Appendix - Department of Labor

[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Labor]
[From the U.S. Government Printing Office, www.gpo.gov]

THE BUDGET FOR FISCAL YEAR 2004

[[Page 647]]

DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING ADMINISTRATION

Federal Funds

General and special funds:

Training and Employment Services

For necessary expenses of the Workforce Investment Act of 1998 (the
``Act''), including the purchase and hire of passenger motor vehicles,
the construction, alteration, and repair of buildings and other
facilities, and the purchase of real property for training centers as
authorized by the Act; $2,488,986,000 plus reimbursements, of which
$1,457,805,000 is available for obligation for the period July 1, 2004
through June 30, 2005, except that amounts determined by the Secretary
to be necessary pursuant to sections 173(a)(4)(A) and 174(c) of the Act
shall be available from October 1, 2003 until expended; of which
$1,000,965,000 is available for obligation for the period April 1, 2004
through June 30, 2005; and of which $30,216,000 is available for the
period July 1, 2004 through June 30, 2007 for necessary expenses of
construction, rehabilitation, and acquisition of Job Corps centers:
Provided, That notwithstanding the transfer limitation under section
133(b)(4) of the Act, up to 40 percent of such funds may be transferred
by a local board if approved by the Governor: Provided further, That
notwithstanding sections 127(b)(1)(A) and 174(a)(2)(B) of such Act, no
funds provided herein shall be available to carry out section 167 of
such Act: Provided further, That no funds from any other appropriation
shall be used to provide meal services at or for Job Corps centers:
Provided further, That notwithstanding sections 127(C) and 132(C) of the
Act for program year 2003, the Secretary shall reallot from States for
the youth, adult, and dislocated worker formula fund programs under
title I of the Act, the amounts by which the unexpended balance in a
State for any such program at the end of program year 2002 exceeds 30
percent of the total amount available for such program in such State for
such year (including funds appropriated for previous program years that
were available during program year 2002), to those States that did not
have such unexpended balances for such program at the end of such year.
Such reallotments shall be made using the formula applicable to such
program for fiscal year 2003 except that such formula shall only be
applied to those States receiving reallotments for such program under
this proviso: Provided further, That nothwithstanding sections 128(C)
and 133(C) of the Act for program year 2003, the Governor may reallocate
from local workforce investment areas for the youth, adult, and
dislocated worker formula fund programs under title I of the Act, the
amounts by which the unexpended balance in a local workforce investment
area for any such program at the end of program year 2002 exceeds 30
percent of the total amount available for such program in such local
workforce investment area for such year (including funds appropriated
for previous program years that were available during program year
2002), to those local workforce investment areas that did not have such
unexpended balances for such program at the end of such year. Such
reallocations shall be made using the formula applicable to such program
for fiscal year 2003 except that such formula shall only be applied to
those local workforce investment areas receiving reallocations for such
program under this proviso.
For necessary expenses of the Act, including the purchase and hire
of passenger motor vehicles, the construction, alteration, and repair of
buildings and other facilities, and the purchase of real property for
training centers as authorized by the Act; $2,463,000,000 plus
reimbursements, of which $2,363,000,000 is available for obligation for
the period October 1, 2004 through June 30, 2005, and of which
$100,000,000 is available for the period October 1, 2004 through June
30, 2007, for necessary expenses of construction, rehabilitation, and
acquisition of Job Corps centers.

Note.--A regular 2003 appropriation for this account had not been
enacted at the time the budget was prepared; therefore, this account is
operating under a continuing resolution (P.L. 107-229, as amended). The
amounts included for 2003 in this budget reflect the Administration's
2003 policy proposals.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0174-0-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ -91 -189
Appropriations:
05.98 Appropriations.................... -91 -98
--------- --------- ----------
07.99 Balance, end of year.............. -91 -189 -189
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Adult employment and training
activities...................... 951 900 900
00.03 Dislocated worker employment and
training activities............. 1,520 1,433 1,469
00.05 Youth activities.................. 1,133 1,001 1,001
00.06 Youth opportunity grants.......... 229 225 44
00.07 Job corps......................... 1,467 1,511 1,573
00.08 Responsible reintegration for
young offenders................. 85 25
00.10 Native Americans.................. 55 55 55
00.11 Migrant and seasonal farmworkers.. 117 1
00.13 National programs................. 261 243 180
09.01 Reimbursable program.............. 16 4 4
--------- --------- ----------
10.00 Total new obligations........... 5,834 5,398 5,226
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,011 985 725
22.00 New budget authority (gross)...... 5,651 5,138 4,956
22.10 Resources available from
recoveries of prior year
obligations..................... 161
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,823 6,123 5,681
23.95 Total new obligations............. -5,834 -5,398 -5,226
23.98 Unobligated balance expiring or
withdrawn....................... -4
24.40 Unobligated balance carried
forward, end of year............ 985 725 455
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,199 2,573 2,489
40.36 Unobligated balance rescinded... -178
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3,021 2,573 2,489
55.00 Advance appropriation........... 2,463 2,463 2,463
Mandatory:

60.00 Appropriation................... 60
60.20 Appropriation (special fund).... 91 98
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 151 98
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 16 4 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,651 5,138 4,956
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5,117 4,928 4,251
73.10 Total new obligations............. 5,834 5,398 5,226
73.20 Total outlays (gross)............. -5,875 -6,075 -5,513
73.40 Adjustments in expired accounts
(net)........................... 13
73.45 Recoveries of prior year
obligations..................... -161
74.40 Obligated balance, end of year.... 4,928 4,251 3,964
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,810 1,712 1,717
86.93 Outlays from discretionary
balances........................ 4,021 4,156 3,641
86.97 Outlays from new mandatory
authority....................... 3
86.98 Outlays from mandatory balances... 44 204 155
--------- --------- ----------
87.00 Total outlays (gross)........... 5,875 6,075 5,513
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -16 -2 -2
88.40 Non-Federal sources........... -2 -2
--------- --------- ----------

[[Page 648]]

88.90 Total, offsetting
collections (cash)........ -16 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,635 5,134 4,952
90.00 Outlays........................... 5,859 6,071 5,509
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 6 6 6
99.01 Outlays........................... 6 6 6
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 5,635 5,134 4,952
Outlays........................... 5,859 6,071 5,509
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 797
Outlays........................... 36
------------------------------------
Total:
Budget Authority.................. 5,635 5,134 5,749
Outlays........................... 5,859 6,071 5,545
====================================

Enacted in 1998, the Workforce Investment Act (WIA), is the primary
authorization for this appropriation account. The act is intended to
revitalize the Nation's job training system to provide workers with the
information, advice, job search assistance, and training they need to
get and keep good jobs, and to provide employers with skilled workers.
Funds appropriated for this account generally are available on a July to
June program year basis, but for 2000 through 2003 substantial advance
appropriation amounts were provided.

Adult employment and training activities.--Grants to provide
financial assistance to States and territories to design and operate
training and employment assistance programs for adults, including low-
income individuals and public assistance recipients.

Dislocated worker employment and training activities.--Grants to
provide reemployment services and retraining assistance to individuals
dislocated from their employment.

Youth activities.--Grants to support a wide range of activities and
services to prepare low-income youth for academic and employment
success, including summer jobs. The program links academic and
occupational learning with youth development activities.

Job corps.--A system of primarily residential centers offering basic
education, training, work experience, and other support, typically to
economically disadvantaged youth.

Native Americans.--Grants to Indian tribes and other Native American
groups to provide training, work experience, and other employment-
related services to Native Americans.

National programs.--Provides program support for WIA activities and
nationally administered programs for segments of the population that
have special disadvantages in the labor market.

Expired programs.--Includes programs previously funded in this
account for which no budget authority is requested for 2003.

Object Classification (in millions of dollars)

Direct obligations:

23.1 Rental payments to GSA.......... 1 2 1
23.3 Communications, utilities, and
miscellaneous charges......... 6 5 5
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 393 361 351
25.3 Other purchases of goods and
services from Government
accounts...................... 8 8 8
25.5 Research and development
contracts..................... 3 3 3
26.0 Supplies and materials.......... 3 3 3
31.0 Equipment....................... 4 4 3
41.0 Grants, subsidies, and
contributions................. 5,207 4,822 4,658
94.0 Financial transfers............. 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 5,627 5,210 5,034
99.0 Reimbursable obligations.......... 16 4 4
Allocation Account:

Personnel compensation:
11.1 Full-time permanent........... 57 59 60
11.3 Other than full-time permanent 3 3 3
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation 64 66 67
12.1 Civilian personnel benefits..... 18 19 19
21.0 Travel and transportation of
persons....................... 2 2 2
22.0 Transportation of things........ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 7 5 6
25.2 Other services.................. 46 45 45
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.6 Medical care.................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 1
26.0 Supplies and materials.......... 34 28 29
31.0 Equipment....................... 2 2 2
32.0 Land and structures............. 1 1 1
41.0 Grants, subsidies, and
contributions................. 13 13 14
--------- --------- ----------
99.0 Allocation account............ 191 184 188
--------- --------- ----------
99.9 Total new obligations........... 5,834 5,398 5,226
---------------------------------------------------------------------------
Obligations are distributed as
follows:
Department of Labor............... 5,642 5,213 5,038
Department of Agriculture......... 121 115 115
Department of the Interior........ 70 70 74
------------------------------------------------------------------------
----------

Training and Employment Services

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0174-2-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Adult employment and training
activities.................... -188
00.03 Dislocated worker employment and
training activities........... -275
00.05 Youth activities................ -1,001
00.15 Consolidated adult and
dislocated worker state grants 1,190
00.16 Youth grants.................... 890
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 616
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 797
23.95 Total new obligations............. -616
24.40 Unobligated balance carried
forward, end of year............ 182
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 797
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 616
73.20 Total outlays (gross)............. -36
74.40 Obligated balance, end of year.... 580
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 36
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 797
90.00 Outlays........................... 36
---------------------------------------------------------------------------

Legislation will be proposed for 2004 to reauthorize the Workforce
Investment Act (WIA). The reauthorization pro

[[Page 649]]

posal will increase State flexibility and target resources more
effectively. For adults, the proposal will consolidate the Adult,
Dislocated Worker and Employment Service State Grants into a single
block grant to facilitate coordination and eliminate duplication in the
provision of services to adults. For youth, the proposal will minimize
overlap between the Departments of Labor (DOL) and Education by
targeting all of DOL's formula resources to out-of-school youth programs
and national grant resources to non-school and out-of-school youth
programs that have proven effective.

Welfare-to-Work Jobs

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0177-0-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,237 688 501
73.20 Total outlays (gross)............. -500 -187 -114
73.40 Adjustments in expired accounts
(net)........................... -49
74.40 Obligated balance, end of year.... 688 501 387
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 500 187 114
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 500 187 114
---------------------------------------------------------------------------

This account provides funding for activities of the Welfare-to-Work
Grants program, which was established by the Balanced Budget Act of 1997
(P.L. 105-33) appropriating funding for 1998 and 1999. Funds are
available for expenditure for up to 5 years after they are provided.
This program provides formula grants to States and federally
administered competitive grants to local workforce boards, political
subdivisions of States, and private entities to assist hard-to-employ
welfare recipients to secure lasting, unsubsidized employment.

Reemployment Accounts

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0328-4-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Grants to states for individual
reemployment accounts........... 3,600
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3,600
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,600
23.95 Total new obligations............. -3,600
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 3,600
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,000
73.10 Total new obligations............. 3,600
73.20 Total outlays (gross)............. -1,600 -2,000
74.40 Obligated balance, end of year.... 2,000
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,600
86.98 Outlays from mandatory balances... 2,000
--------- --------- ----------
87.00 Total outlays (gross)........... 1,600 2,000
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,600
90.00 Outlays........................... 1,600 2,000
---------------------------------------------------------------------------
-------

Legislation will be proposed to authorize grants to States for Re-
employment Accounts for unemployed workers. These accounts would provide
certain unemployed workers up to $3,000 per person to purchase job
training, child care, transportation, or moving services, or to finance
other expenses of finding a job. As an additional incentive to find
work, an individual who gets a job within thirteen weeks of establishing
the account would receive any funds remaining in the account as a re-
employment bonus.

Community Service Employment for Older Americans

To carry out title V of the Older Americans Act of 1965, as amended,
$440,200,000.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0175-0-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 National programs................. 345 343 343
00.02 State programs.................... 100 97 97
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 445 440 440
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 445 440 440
23.95 Total new obligations............. -445 -440 -440
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 445 440 440
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 398 384 380
73.10 Total new obligations............. 445 440 440
73.20 Total outlays (gross)............. -454 -444 -442
73.40 Adjustments in expired accounts
(net)........................... -5
74.40 Obligated balance, end of year.... 384 380 378
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 70 84 84
86.93 Outlays from discretionary
balances........................ 384 360 358
--------- --------- ----------
87.00 Total outlays (gross)........... 454 444 442
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 445 440 440
90.00 Outlays........................... 454 444 442
---------------------------------------------------------------------------

This program provides part-time work experience in community service
activities to unemployed, low-income persons aged 55 and over.

Federal Unemployment Benefits and Allowances

For payments during the current fiscal year of trade adjustment
benefit payments and allowances under part I; and for training,
allowances for job search and relocation, and related State
administrative expenses under part II of chapter 2, title II of the
Trade Act of 1974 (including the benefits and services described under
sections 123(c)(2) and 151(b) and (c) of the Trade Adjustment Assistance
Reform Act of 2002, P.L. 107-210), $1,338,200,000, together with such
amounts as may be necessary to be charged to the subsequent
appropriation for payments for any period subsequent to September 15 of
the current year.

[[Page 650]]

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Trade adjustment assistance
benefits...................... 254 561 1,062
00.02 Trade adjustment assistance
training...................... 94 222 258
00.03 North American Free Trade
Agreement adjustment
assistance benefits........... 32 51 7
00.04 North American Free Trade
Agreement adjustment
assistance training........... 37 37 1
00.05 Wage insurance demonstration.... 10
09.01 Reimbursable program.............. 15 40 40
--------- --------- ----------
10.00 Total new obligations........... 432 911 1,378
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 434 911 1,378
23.95 Total new obligations............. -432 -911 -1,378
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 416 871 1,338
69.00 Offsetting collections (cash)..... 18 40 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 434 911 1,378
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 168 181 250
73.10 Total new obligations............. 432 911 1,378
73.20 Total outlays (gross)............. -406 -842 -1,352
73.40 Adjustments in expired accounts
(net)........................... -13
74.40 Obligated balance, end of year.... 181 250 276
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 312 748 1,215
86.98 Outlays from mandatory balances... 94 94 137
--------- --------- ----------
87.00 Total outlays (gross)........... 406 842 1,352
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -15 -40 -40
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 416 871 1,338
90.00 Outlays........................... 391 802 1,312
---------------------------------------------------------------------------

The Trade Adjustment Assistance Reform Act of 2002 (Division A of
Public Law 107-210) was signed into law on August 6, 2002. This Act
amended the Trade Act of 1974 to consolidate the previous Trade
Adjustment Assistance (TAA) and NAFTA Transitional Adjustment Assistance
(NAFTA-TAA) programs into a single, enhanced TAA program with expanded
eligibility, services, and benefits. Additionally, the act provides for
a program of Alternative Trade Adjustment Assistance for Older Workers.
The amendments generally apply only to those workers covered by a
petition for certification filed on or after November 4, 2002. Sections
123(c) and 151(b) and (c) of the Trade Adjustment Assistance Reform Act
provide that workers certified under a petition filed before November 4
will continue to be eligible for services and benefits in accordance
with the requirements that were applicable to the previous TAA and
NAFTA-TAA programs, until such time as their eligibility under those
requirements is exhausted. Therefore, the amounts appropriated to the
Federal Unemployment Benefits and Allowances (FUBA) account are to
provide for services and benefits to workers certified under the amended
program, as well as the predecessor programs.

Trade adjustment assistance.--Adjustment assistance, including cash
weekly benefits, training, job search and relocation allowances, is paid
to workers as authorized by the Trade Act of 1974, as amended.

North American Free Trade Agreement (NAFTA) transitional adjustment
assistance.--Adjustment assistance, including weekly cash benefits,
training, job search and relocation allowances, is paid to workers
determined to be adversely affected as a result of trade with Canada and
Mexico as authorized by the Trade Act of 1974, as amended.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0326-0-1-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 417 871 1,338
99.0 Reimbursable obligations:
Reimbursable obligations........ 15 40 40
--------- --------- ----------
99.9 Total new obligations........... 432 911 1,378
---------------------------------------------------------------------------

State Unemployment Insurance and Employment Service Operations

For authorized administrative expenses, $144,452,000, together with
not to exceed $3,502,331,000 (including not to exceed $1,228,000 which
may be used for amortization payments to States which had independent
retirement plans in their State employment service agencies prior to
1980), which may be expended from the Employment Security Administration
Account in the Unemployment Trust Fund including the cost of
administering section 51 of the Internal Revenue Code of 1986, as
amended, section 7(d) of the Wagner-Peyser Act, as amended, the Trade
Act of 1974, as amended, the Immigration Act of 1990, and the
Immigration and Nationality Act, as amended, and of which the sums
available in the allocation for activities authorized by title III of
the Social Security Act, as amended (42 U.S.C. 502-504), and the sums
available in the allocation for necessary administrative expenses for
carrying out 5 U.S.C. 8501-8523, shall be available for obligation by
the States through December 31, 2004, except that funds used for
automation acquisitions shall be available for obligation by the States
through September 30, 2006; of which $144,452,000, together with not to
exceed $773,283,000 of the amount which may be expended from said trust
fund, shall be available for obligation for the period July 1, 2004
through June 30, 2005, to fund activities under the Act of June 6, 1933,
as amended, including the cost of penalty mail authorized under 39
U.S.C. 3202(a)(1)(E) made available to States in lieu of allotments for
such purpose: Provided, That to the extent that the Average Weekly
Insured Unemployment (AWIU) for fiscal year 2004 is projected by the
Department of Labor to exceed 3,227,000, an additional $28,600,000 shall
be available for obligation for every 100,000 increase in the AWIU level
(including a pro rata amount for any increment less than 100,000) from
the Employment Security Administration Account of the Unemployment Trust
Fund: Provided further, That funds appropriated in this Act which are
used to establish a national one-stop career center system, or which are
used to support the national activities of the Federal-State
unemployment insurance programs, may be obligated in contracts, grants
or agreements with non-State entities: Provided further, That funds
appropriated under this Act for activities authorized under the Wagner-
Peyser Act, as amended, and title III of the Social Security Act, may be
used by the States to fund integrated Employment Service and
Unemployment Insurance automation efforts, notwithstanding cost
allocation principles prescribed under Office of Management and Budget
Circular A-87.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0179-0-1-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

Unemployment compensation:
00.01 State administration.......... 2,860 2,794 2,640
00.02 National activities........... 10 10 11
Employment service:
00.10 Grants to States.............. 805 773 773
00.11 National activities........... 51 29 79

[[Page 651]]

00.12 One-stop career centers....... 113 113 101
00.13 Work incentive grants........... 20 20 20
09.01 Reimbursable program.............. 2 10 10
--------- --------- ----------
10.00 Total new obligations........... 3,861 3,749 3,634
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 100 104 284
22.00 New budget authority (gross)...... 3,864 3,929 3,656
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,964 4,033 3,940
23.95 Total new obligations............. -3,861 -3,749 -3,634
24.40 Unobligated balance carried
forward, end of year............ 104 284 306
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 167 156 144
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 2,978 3,551 3,512
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 573
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 3,551 3,551 3,512
Mandatory:

69.00 Offsetting collections (cash)... 146 222
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,864 3,929 3,656
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 320 323 34
73.10 Total new obligations............. 3,861 3,749 3,634
73.20 Total outlays (gross)............. -3,622 -4,038 -3,652
73.40 Adjustments in expired accounts
(net)........................... -4
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -573
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 341
74.40 Obligated balance, end of year.... 323 34 16
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2,386 2,915 2,837
86.93 Outlays from discretionary
balances........................ 1,189 801 815
86.97 Outlays from new mandatory
authority....................... 47 222
86.98 Outlays from mandatory balances... 100
--------- --------- ----------
87.00 Total outlays (gross)........... 3,622 4,038 3,652
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Federal sources:
88.00 Federal sources............. -343 -10 -10
88.00 Trust Fund sources.......... -3,122 -3,763 -3,502
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3,465 -3,773 -3,512
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -573
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 341
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 167 156 144
90.00 Outlays........................... 157 265 140
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 167 156 144
Outlays........................... 157 265 140
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -23
Outlays........................... -5
------------------------------------
Total:
Budget Authority.................. 167 156 121
Outlays........................... 157 265 135
====================================

Unemployment compensation.--State administration amounts provide
administrative grants to State agencies which pay unemployment
compensation to eligible workers and collect State unemployment taxes
from employers. These agencies also pay unemployment benefits to former
Federal personnel as well as trade adjustment assistance to eligible
individuals. State administration amounts also provide administrative
grants to State agencies to improve the integrity and financial
stability of the unemployment compensation program through a
comprehensive program, UI Performs. The purpose is to effect continuous
improvement in State performance and related activities designed to
assess and reduce errors and prevent fraud, waste, and abuse in the
payment of unemployment compensation benefits and the collection of
unemployment taxes. National activities relating to the Federal-State
unemployment insurance programs are conducted through contracts or
agreements with the State agencies or with non-state entities. A
workload reserve is included in State administration to meet increases
in the costs of administration resulting from changes in State law, or
increases in the number of claims filed and claims paid. The
appropriation automatically provides additional funds whenever
unemployment increases above budgeted levels.

PROGRAM STATISTICS

2001 2002 2003 2004
actual estimate estimate estimate
Staff years..................................... 33,090 36,716 52,102 50,967
Basic workload (in thousands):
Employer tax accounts......................... 6,839 6,933 7,045 7,098
Employee wage items recorded.................. 609,371 609,096 621,867 636,510
Initial claims taken.......................... 20,274 22,606 23,221 22,587
Eligibility interviews........................ 2,918 2,005 14,182 12,688
Weeks claimed................................. 139,948 190,442 182,383 163,978
Nonmonetary determinations.................... 7,851 8,521 8,305 7,798
Appeals....................................... 1,107 1,365 1,468 1,392
Covered employment............................ 128,460 127,110 128,220 129,900

4Employment service.--The public employment service is a nationwide
system providing no-fee employment services to individuals who are
seeking employment and employers who are seeking workers. State
employment service activities are financed by allotments to States
distributed under a demographically based funding formula established
under the Wagner-Peyser Act, as amended. Employment service allotments
are funded on a program year basis running from July 1 through June 30
of the following year. The reemployment needs of unemployed workers who
lose their jobs through no fault of their own and who need extra job
finding help are financed by Reemployment Services grants. These funds
are distributed to States on a program year basis running from July 1
through June 30 the following year.

Employment service activities serving national needs, which includes
certification of aliens for employment-based visas, are conducted
through specific reimbursable agreements between the States and the
Federal Government under the Wagner-Peyser Act, as amended and other
legislation. Funding is also provided for amortization payments for
States which had independent retirement plans prior to 1980 in their
State employment service agencies.

One-stop career centers.--These funds will be used to support the
joint Federal-State efforts to improve the comprehensive One-Stop system
created under the Workforce Investment Act (WIA). This system provides
workers and employers with quick and easy access to a wide array of
enhanced career development and labor market information services. In
this activity, funds will be used to implement the emerging e-government
strategy for the WIA workforce system, which will improve accessibility,
update the one-stop technology infrastructure, and improve the
efficiency of the labor exchange and other services.

Work incentive grants.--These funds provide competitive grants to
improve access to and coordination of information, benefits, and
services to enable individuals with disabilities to return to work.

[[Page 652]]

PROGRAM STATISTICS
[In thousands]
Total applicants................................ 19,016 17,000 17,000 17,000
Entered employment.............................. 3,924 9,860 9,860 9,860

\1\ For the program year, July 1, 2001-June 30, 2002.
\2\ For the program year, July 1, 2002-June 30, 2003.
\3\ For the program year, July 1, 2003-June 30, 2004.
\4\ For the program year, July 1, 2004-June 30, 2005.

Object Classification (in millions of dollars)

Direct obligations:

23.3 Communications, utilities, and
miscellaneous charges......... 153 125 125
41.0 Grants, subsidies, and
contributions................. 3,706 3,614 3,499
--------- --------- ----------
99.0 Direct obligations............ 3,859 3,739 3,624
99.0 Reimbursable obligations.......... 2 10 10
--------- --------- ----------
99.9 Total new obligations........... 3,861 3,749 3,634
---------------------------------------------------------------------------

State Unemployment Insurance and Employment Service Operations

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

Employment service:
00.10 Grants to States.............. -797
--------- --------- ----------
10.00 Total new obligations........... -797
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -797
23.95 Total new obligations............. 797
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -23
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. -774
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -797
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -797
73.20 Total outlays (gross)............. 779
74.40 Obligated balance, end of year.... -19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -779
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Trust Fund sources...... 774
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -23
90.00 Outlays........................... -5
---------------------------------------------------------------------------

Legislation will be proposed for 2004 to amend the Wagner-Peyser Act
and the Workforce Investment Act to consolidate the Employment Service
State Grants with the Adult and Dislocated Worker programs into a single
block grant to increase state flexibility, facilitate coordination, and
eliminate duplication in the provision of employment services to adults.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0179-2-1-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
23.3 Communications, utilities, and
miscellaneous charges........... -16
41.0 Grants, subsidies, and
contributions................... -781
--------- --------- ----------
99.9 Total new obligations........... -797
---------------------------------------------------------------------------

Payments to the Unemployment Trust Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0178-0-1-603 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.10 Payments to EUCA.................. 270 644 103
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 270 644 103
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 38
22.00 New budget authority (gross)...... 303 606 103
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 308 644 103
23.95 Total new obligations............. -270 -644 -103
24.40 Unobligated balance carried
forward, end of year............ 38
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 303 606 103
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 270 644 103
73.20 Total outlays (gross)............. -270 -644 -103
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 270 606 103
86.98 Outlays from mandatory balances... 38
--------- --------- ----------
87.00 Total outlays (gross)........... 270 644 103
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 303 606 103
90.00 Outlays........................... 270 644 103
---------------------------------------------------------------------------

This account was initiated as a result of the amendments to the
Emergency Unemployment Compensation law (P.L. 102-164, as amended) which
currently provides for general fund financing for administrative costs
related to extended benefits under the optional, total unemployment rate
trigger. This account is also used to make reimbursements for a portion
of benefits paid under the Temporary Extended Unemployment Compensation
Act of 2002 (P.L. 107-147). These funds are transferred to a receipt
account in the Unemployment Trust Fund (UTF) so that resources may be
transferred to the Employment Security Administration Account in the UTF
for administrative costs or to the Extended Unemployment Compensation
Account for benefit costs.

Advances to the Unemployment Trust Fund and Other Funds

For repayable advances to the Unemployment Trust Fund as authorized
by sections 905(d) and 1203 of the Social Security Act, as amended, and
to the Black Lung Disability Trust Fund as authorized by section
9501(c)(1) of the Internal Revenue Code of 1954, as amended; and for
nonrepayable advances to the Unemployment Trust Fund as authorized by
section 8509 of title 5, United States Code, and to the ``Federal
unemployment benefits and allowances'' account, to remain available
until September 30, 2005, $467,000,000.
In addition, for making repayable advances to the Black Lung
Disability Trust Fund in the current fiscal year after September 15,
2004, for costs incurred by the Black Lung Disability Trust Fund in the
current fiscal year, such sums as may be necessary.

[[Page 653]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0327-0-1-600 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.02 North American Free Trade
Agreement adjustment assistance
benefits........................ 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3
23.95 Total new obligations............. -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 3
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 3
73.20 Total outlays (gross)............. -3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3
90.00 Outlays........................... 3
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 3
Outlays........................... 3
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 2,318
Outlays........................... 2,318
------------------------------------
Total:
Budget Authority.................. 3 2,318
Outlays........................... 3 2,318
====================================

This account provides repayable advances to the Black Lung
Disability Trust Fund for making payments from that fund whenever its
balances prove insufficient. The funding requested in this appropriation
for 2004 is entirely for Black Lung. This spending authority is
presented as authority to borrow in the Black Lung Disability Trust
Fund.

This account may also provide advances to several other accounts to
pay unemployment compensation to eligible individuals under various
Federal and State unemployment compensation laws whenever the balances
in the funds prove insufficient or whenever reimbursements to certain
accounts, as allowed by law, are to be made. Advances made to the
Federal employees compensation account in the Unemployment Trust Fund
and to the Federal unemployment benefits and allowances account are
nonrepayable. All other advances made to the Federal unemployment
account and to the Extended unemployment compensation account (both in
the Unemployment Trust Fund) are repaid, with interest, to the general
fund of the Treasury.

Advances to the Unemployment Trust Fund

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0327-2-1-600 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.02 One-time prepayment premium to
Treasury........................ 2,318
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 2,318
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2,318
23.95 Total new obligations............. -2,318
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 2,318
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 2,318
73.20 Total outlays (gross)............. -2,318
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 2,318
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,318
90.00 Outlays........................... 2,318
---------------------------------------------------------------------------

The Black Lung Disability Trust Fund (BLDTF) revenues, which consist
primarily of excise taxes on coal, are not sufficient to repay its $9
billion debt to the Treasury or to service the interest on that debt.
See discussion in the Black Lung Disability Trust Fund for a full
description of the Administration's proposal to remedy this problem. As
a part of this proposal, the Administration will propose legislation
that will provide for a one-time appropriation to permit the BLDTF to
compensate the General Fund for lost interest income.

Program Administration

For expenses of administering employment and training programs,
$115,824,000, of which $2,393,000 is to administer welfare-to-work
grants together with not to exceed $67,541,000, which may be expended
from the Employment Security Administration Account in the Unemployment
Trust Fund.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0172-0-1-504 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Adult services.................. 37 44 46
00.02 Youth services.................. 38 39 39
00.03 Workforce security.............. 50 52 65
00.04 Apprenticeship training,
employer and labor services... 21 21 21
00.05 Executive direction............. 9 10 10
00.06 Welfare-to-work................. 6 5 2
--------- --------- ----------
10.00 Total new obligations........... 161 171 183
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 161 171 183
23.95 Total new obligations............. -161 -171 -183
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 113 116 116
40.71 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 112 116 116
68.00 Spending authority from offsetting
collections: Trust Fund sources. 49 55 67
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 161 171 183
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 23 18
73.10 Total new obligations............. 161 171 183
73.20 Total outlays (gross)............. -155 -175 -184
74.40 Obligated balance, end of year.... 23 18 18
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 144 160 172
86.93 Outlays from discretionary
balances........................ 11 15 12
--------- --------- ----------
87.00 Total outlays (gross)........... 155 175 184
----------------------------------------------------------------------------

[[Page 654]]

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Trust fund sources...... -49 -55 -67
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 112 116 116
90.00 Outlays........................... 106 120 117
----------------------------------------------------------------------------

Adult services.--Provides leadership, policy direction and
administration for a decentralized system of grants to State and local
governments as well as federally administered programs for job training
and employment assistance for low income adults and dislocated workers;
provides for training and employment services to special targeted
groups; provides for the settlement of trade adjustment petitions; and
includes related program operations support activities.

Youth services.--Provides leadership, policy direction and
administration for a decentralized system of grants to State and local
governments as well as federally administered programs for job training
and employment assistance for youth, including youth grants, the Job
Corps, and Youth Opportunity Grants.

Workforce security.--Provides leadership and policy direction for
the administration of the comprehensive nationwide public employment
service system; oversees unemployment insurance programs in each State;
administers foreign labor certification programs; supports a one-stop
career center network, including a comprehensive system of collecting,
analyzing and disseminating labor market information; and includes
related program operations support activities.

Apprenticeship training, employer and labor services.--Promotes and
provides leadership and policy direction for the administration of
apprenticeship as a method of skill acquisition through a Federal-State
apprenticeship structure. Employer and labor services will facilitate
the understanding and responsiveness of workforce development systems to
the training needs of employers and the interest of labor organizations
in training programs.

Executive direction.--Provides leadership and policy direction for
all training and employment services programs and activities and
provides for related program operations support, including research,
evaluations, and demonstrations.

Welfare-to-work.--Provides leadership, policy direction, technical
assistance, and administration for a decentralized system of grants to
States and federally administered competitive grants to Workforce
Investment Boards, political subdivisions of States, and private
entities to assist hard-to-employ welfare recipients and certain
noncustodial parents to secure lasting, unsubsidized employment.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 85 85 92
11.3 Other than full-time permanent 2 2 2
11.5 Other personnel compensation.. 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 89 89 96
12.1 Civilian personnel benefits..... 20 22 24
21.0 Travel and transportation of
persons....................... 5 5 5
23.1 Rental payments to GSA.......... 11 12 14
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 4 11 11
25.2 Other services.................. 3 3 3
25.3 Other purchases of goods and
services from Government
accounts...................... 13 14 15
25.7 Operation and maintenance of
equipment..................... 8 9 9
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 3 2 2
--------- --------- ----------
99.0 Direct obligations............ 160 171 183
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 161 171 183
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 1,292 1,257 1,357
Reimbursable:
Total compensable workyears:

2001 Civilian full-time equivalent
employment.................... 3 3 3
Allocation account:
Total compensable workyears:

3001 Civilian full-time equivalent
employment.................... 49 110
---------------------------------------------------------------------------

Workers Compensation Programs

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0170-0-1-806 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Workers compensation programs..... 175
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 175
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 175
22.00 New budget authority (gross)...... 175
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 175 175
23.95 Total new obligations............. -175
24.40 Unobligated balance carried
forward, end of year............ 175
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 175
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 175
73.20 Total outlays (gross)............. -175
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 175
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 175
90.00 Outlays........................... 175
---------------------------------------------------------------------------

Unemployment Trust Fund

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8042-0-7-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 88,302 67,271 48,998
Receipts:
02.00 General taxes, FUTA............... 6,613 6,777 6,872
02.01 State accounts, deposits by States 20,911 27,312 33,195
02.02 Deposits by Railroad Retirement
Board........................... 95 141 139
02.20 CMIA interest, Unemployment trust
fund............................ 5 3 3
02.40 Deposits by Federal agencies to
the Federal Employees
Compensation Account............ 448 544 538
02.41 Interest and profits on
investments in public debt
securities...................... 5,445 3,460 2,711
02.42 Payments from the general fund for
administrative cost for exten... 270 644 103

[[Page 655]]

02.80 Offsetting collections, Railroad
unemployment insurance trust
fund............................ 30 26 26
--------- --------- ----------
02.99 Total receipts and collections.. 33,817 38,907 43,587
--------- --------- ----------
04.00 Total: Balances and collections... 122,119 106,178 92,585
Appropriations:
Appropriations:

05.00 Unemployment trust fund......... -54,700 -57,031 -43,675
05.00 Legislative proposal not subject
to PAYGO, Employment Service
consolidation................. 774
05.01 Railroad unemployment insurance
trust fund...................... -148 -149 -142
--------- --------- ----------
05.99 Total appropriations............ -54,848 -57,180 -43,043
--------- --------- ----------
07.99 Balance, end of year.............. 67,271 48,998 49,542
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Federal-State unemployment insurance:

Withdrawals:
00.01 Benefit payments by States.... 50,175 52,345 39,269
00.02 Federal employees'
unemployment compensation... 524 567 520
00.03 State administrative expenses..... 3,689 3,835 3,578
Federal administrative expenses:

00.10 Direct expenses................. 54 60 74
00.11 Reimbursements to the Department
of the Treasury............... 69 35 38
00.20 Veterans employment and training.. 186 186 193
00.21 Interest on refunds............... 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 54,700 57,031 43,675
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 54,700 57,031 43,675
23.95 Total new obligations............. -54,700 -57,031 -43,675
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.26 Appropriation (trust fund)...... 3,859 3,859 3,845
Mandatory:

Appropriation (trust fund):
60.26 Appropriation (trust fund)[UI
Benefits]................... 50,695 52,950 39,830
60.26 Appropriation (trust
fund)[TEUC Admin]........... 146 222
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 50,841 53,172 39,830
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 54,700 57,031 43,675
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,029 1,257 1,114
73.10 Total new obligations............. 54,700 57,031 43,675
73.20 Total outlays (gross)............. -54,471 -57,174 -43,661
74.40 Obligated balance, end of year.... 1,257 1,114 1,128
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2,964 2,815 2,785
86.93 Outlays from discretionary
balances........................ 666 1,187 1,046
86.97 Outlays from new mandatory
authority....................... 50,841 53,172 39,830
--------- --------- ----------
87.00 Total outlays (gross)........... 54,471 57,174 43,661
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 54,700 57,031 43,675
90.00 Outlays........................... 54,471 57,174 43,661
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 88,638 68,523 49,821
92.02 Total investments, end of year:
Federal securities: Par value... 68,523 49,821 50,639
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 4 4 4
99.01 Outlays........................... 4 4 4
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 54,700 57,031 43,675
Outlays........................... 54,471 57,174 43,661
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -774
Outlays........................... -774
------------------------------------
Total:
Budget Authority.................. 54,700 57,031 42,901
Outlays........................... 54,471 57,174 42,887
====================================

The financial transactions of the Federal-State and railroad
unemployment insurance systems are made through the Unemployment Trust
Fund. All State and Federal unemployment tax receipts are deposited in
the trust fund and invested in Government securities until needed for
benefit payments or administrative costs. States may receive repayable
advances from the fund when their balances in the fund are insufficient
to pay benefits. The fund may receive repayable advances from the
general fund when it has insufficient balances to make advances to
States or to pay the Federal share of extended benefits.

State payroll taxes pay for all regular State benefits. During
periods of high State unemployment, extended benefits, financed one-half
by State payroll taxes and one-half by the Federal unemployment payroll
tax, are also paid. The Federal tax pays the costs of Federal and State
administration of unemployment insurance and veterans employment
services and 97% of the costs of the employment service. The Federal tax
also pays for benefits under the Temporary Extended Unemployment
Compensation program.

The Federal employees compensation account provides funds to States
for unemployment compensation benefits paid to eligible former Federal
civilian personnel, Postal Service employees, and ex-servicemembers.
Benefits paid are reimbursed to the Federal employees compensation
account by the various Federal agencies. Any additional resources
necessary to assure that the account can make the required payments to
States will be provided from the Advances to the Unemployment Trust Fund
and other funds account.

Both the benefit payments and administrative expenses of the
separate unemployment insurance program for railroad employees are paid
from the Unemployment Trust Fund and receipts from the tax on railroad
payrolls are deposited in the fund to meet expenses.

Status of Funds (in millions of dollars)

Receipts:
1200 General taxes, FUTA,
Unemployment trust fund..... 6,613 6,777 6,872
1201 Unemployment trust fund, State
accounts, Deposits by States 20,911 27,312 33,195
1202 Deposits by Railroad
Retirement Board............ 95 141 139
Offsetting receipts
(proprietary):
1220 CMIA interest, Unemployment
trust fund.................. 5 3 3
Offsetting receipts
(intragovernmental):
1240 Deposits by Federal agencies
to the Federal Employees
Compensation Account,
Unemployment trust fund..... 448 544 538
1241 Unemployment trust fund,
Interest and profits on
investments in public debt
securities.................. 5,445 3,460 2,711
1242 Offsetting receipts
(intragovernmental)......... 270 644 103
Offsetting collections:
1280 Railroad unemployment
insurance trust fund,
Offsetting collections...... 30 26 26
--------- --------- ----------
1299 Income under present law...... 33,817 38,907 43,587
Cash outgo during year:
Current law:

4500 Unemployment trust fund......... -54,471 -57,174 -43,661
4501 Railroad unemployment insurance
trust fund.................... -129 -136 -126
--------- --------- ----------
4599 Outgo under current law (-)... -54,600 -57,310 -43,787
Proposed legislation:

5500 Legislative proposal not subject
to PAYGO...................... 774
--------- --------- ----------

[[Page 656]]

6599 Total cash outgo (-)............ -54,600 -57,310 -43,013
7645 Transfers, net.................... -14 -16 -16
Unexpended balance, end of year:
8700 Uninvested balance................ -22 260
8701 Federal securities: Par value..... 68,523 49,821 50,639
--------- --------- ----------
8799 Total balance, end of year...... 68,501 50,081 50,639
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8042-0-7-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.3 Reimbursements to Department of
the Treasury.................... 69 35 38
Insurance claims and indemnities:

42.0 Federal unemployment benefits... 524 567 520
42.0 State unemployment benefits..... 50,175 52,345 39,269
43.0 Interest and dividends............ 3 3 3
Financial transfers:

94.0 Employment and Training
Administration................ 49 54 68
94.0 Veterans employment and training 186 186 193
94.0 Payments to States for
administrative expenses....... 3,689 3,835 3,578
94.0 Departmental management......... 5 6 6
--------- --------- ----------
99.0 Direct obligations............ 54,700 57,031 43,675
--------- --------- ----------
99.9 Total new obligations........... 54,700 57,031 43,675
---------------------------------------------------------------------------

Unemployment Trust Fund

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8042-2-7-999 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.03 State administrative expenses..... -774
--------- --------- ----------
10.00 Total new obligations (object
class 94.0)................... -774
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -774
23.95 Total new obligations............. 774
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.26 Appropriation (trust fund)...... -774
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -774
73.20 Total outlays (gross)............. 774
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -774
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -774
90.00 Outlays........................... -774
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
92.02 Total investments, end of year:
Federal securities: Par value...
---------------------------------------------------------------------------

In addition to the legislative proposal to consolidate the
Employment Service and Workforce Investment Act Adult and Dislocated
Worker grant programs, legislation will also be proposed to reform
unemployment insurance (UI) administration. The proposal is designed to
make the UI system more responsive to the needs of workers and employers
by giving states flexibility and control. It would reduce current
Federal payroll taxes on employers by 25 percent in 2005 and 75 percent
in 2009. These changes would not affect workers' UI benefits, which are
paid by State, not Federal funds.

EMPLOYEE BENEFITS SECURITY ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for the Employee Benefits Security
Administration, $128,605,000.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1700-0-1-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Enforcement and participant
assistance.................... 90 97 107
00.02 Policy and compliance assistance 15 16 17
00.03 Executive leadership, program
oversight and administration.. 5 4 5
09.01 Reimbursable program.............. 8 17 17
--------- --------- ----------
10.00 Total new obligations........... 118 134 146
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 118 134 146
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 118 135 146
23.95 Total new obligations............. -118 -134 -146
24.40 Unobligated balance carried
forward, end of year............ 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 111 117 129
40.71 Reduction pursuant to P.L. 107-
116........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 110 117 129
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 8 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 118 134 146
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 40 41 42
73.10 Total new obligations............. 118 134 146
73.20 Total outlays (gross)............. -116 -133 -143
74.40 Obligated balance, end of year.... 41 42 46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 90 111 120
86.93 Outlays from discretionary
balances........................ 26 22 23
--------- --------- ----------
87.00 Total outlays (gross)........... 116 133 143
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -8 -17 -17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 110 117 129
90.00 Outlays........................... 108 116 126
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 4 5 5
99.01 Outlays........................... 4 5 5
---------------------------------------------------------------------------

[[Page 657]]

With this budget transmittal, the Pension and Welfare Benefits
Administration (PWBA) is renamed the Employee Benefits Security
Administration (EBSA). The transmittal also includes new budget
activities to strengthen the link between resources, workload, and
results.

Enforcement and participant assistance.--Conducts criminal and civil
investigations and performs reviews to ensure compliance with the
fiduciary provisions of the Employee Retirement Income Security Act
(ERISA) and the Federal Employees' Retirement System Act. Provides
information and assistance to benefit plan participants and to the
general public. Assures compliance with applicable reporting
requirements, as well as accounting, auditing and actuarial standards.
Supplies required reports to the public. The 2004 estimates include
enhancing enforcement and better coordination nationwide.
2002 actual 2003 est. 2004 est.
Plan reviews conducted.............. 2,261 2,000 2,000
Investigations conducted............ 5,079 4,698 5,450
Investigations closed that restored
or protected assets................. 2,877 2,300 2,668
Benefit recoveries from customer
assistance.......................... $48,700,000 $48,000,000 $48,000,000
Inquiries received.................. 182,025 193,840 193,840

Policy and compliance assistance.--Conducts policy, research, and
legislative analyses on pension, health, and other employee benefit
issues. Provides compliance assistance especially to employers and plan
officials. Writes regulations and interpretations. Issues individual and
class exemptions from regulations. The 2004 estimates include an
initiative to enhance compliance assistance programs.

2002 actual 2003 est. 2004 est.
Exemptions, determinations,
interpretations, and regulations
issued.............................. 1,050 1,233 1,261
Average days to process exemption
requests............................ 329 312 296

Executive leadership, program oversight, and administration.--
Provides leadership, policy direction, strategic planning, and
administrative guidance in the management of employee benefit programs.
Provides analytical and administrative support for financial and human
capital management and other administrative functions related to
coordination and implementation of government-wide management
initiatives. Manages the technical program training for the agency's
enforcement, policy, legislative and regulatory functions.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 55 57 63
12.1 Civilian personnel benefits..... 13 14 15
21.0 Travel and transportation of
persons....................... 3 3 3
23.1 Rental payments to GSA.......... 6 6 7
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 7 7 7
25.3 Other purchases of goods and
services from Government
accounts...................... 8 7 9
25.5 Research and development
contracts..................... 2 2 3
25.7 Operation and maintenance of
equipment..................... 11 16 17
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 2 2 2
--------- --------- ----------
99.0 Direct obligations............ 110 117 129
99.0 Reimbursable obligations.......... 8 17 17
--------- --------- ----------
99.9 Total new obligations........... 118 134 146
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 848 861 930
---------------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION

Federal Funds

Public enterprise funds:

Pension Benefit Guaranty Corporation Fund

The Pension Benefit Guaranty Corporation is authorized to make such
expenditures, including financial assistance authorized by section 104
of Public Law 96-364, within limits of funds and borrowing authority
available to such Corporation, and in accord with law, and to make such
contracts and commitments without regard to fiscal year limitations as
provided by section 104 of the Government Corporation Control Act, as
amended (31 U.S.C. 9104), as may be necessary in carrying out the
program, including associated administrative expenses, through September
30, 2004 for such Corporation: Provided, That none of the funds
available to the Corporation for fiscal year 2004 shall be available for
obligations for administrative expenses in excess of $228,772,000:
Provided further, That obligations in excess of such amount may be
incurred only after approval by the Office of Management and Budget and
15 days after notice thereof is transmitted to the Committees on
Appropriations of the House and the Senate.

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Single-employer benefit payment... 1,878 2,350 2,961
09.02 Multi-employer financial
assistance...................... 5 6 14
09.03 Pension insurance activities...... 10 12 17
09.04 Pension plan termination.......... 139 132 132
09.05 Operational support............... 76 81 80
--------- --------- ----------
10.00 Total new obligations........... 2,108 2,581 3,204
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 11,456 12,460 12,626
22.00 Budget authority from offsetting
collections..................... 3,058 2,748 3,303
22.10 Resources available from
recoveries of prior year
obligations..................... 53
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14,567 15,208 15,929
23.95 Total new obligations............. -2,108 -2,581 -3,204
24.40 Unobligated balance carried
forward, end of year............ 12,460 12,626 12,724
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 12 13 17
Mandatory:

69.00 Offsetting collections (cash)... 3,046 2,735 3,286
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,058 2,748 3,303
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 125 86 125
73.10 Total new obligations............. 2,108 2,581 3,204
73.20 Total outlays (gross)............. -2,093 -2,542 -3,204
73.45 Recoveries of prior year
obligations..................... -53
74.40 Obligated balance, end of year.... 86 125 125
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 12 13 17
86.97 Outlays from new mandatory
authority....................... 2,081 2,529 3,187
--------- --------- ----------
87.00 Total outlays (gross)........... 2,093 2,542 3,204
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.20 Interest on Federal securities -676 -922 -925
Non-Federal sources:
88.40 Premium income.............. -864 -853 -841
88.40 Benefit payment
reimbursements............ -1,178 -748 -1,308
88.40 Reimbursements from trust
funds for services related
to terminations........... -335 -225 -229
88.40 Other Income................ -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3,058 -2,748 -3,303
----------------------------------------------------------------------------

[[Page 658]]

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -965 -206 -99
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 11,575 12,834 13,039
92.02 Total investments, end of year:
Federal securities: Par value... 12,834 13,039 13,137
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 2 2 2
99.01 Outlays........................... 2 2 2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-4204-0-3-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1231 Disbursements: Direct loan
disbursements................... 5 6 14
1263 Write-offs for default: Direct
loans........................... -5 -6 -14
---------------------------------------------------------------------------

This wholly owned government corporation administers mandatory
insurance programs to prevent loss of pension benefits under covered
private, defined-benefit pension plans if single-employer plans
terminate or if multiemployer plans are unable to pay benefits.

The 2004 Budget proposes the elimination of a discretionary limit on
administrative expenditures for the Pension Benefit Guaranty Corporation
(PBGC). In 2004 and beyond, the Budget will provide permanent authority
to finance the PGBC's administrative expenditures through revised
appropriations language. This proposal will increase the PBGC's ability
to manage effectively its fluctuating workload of plan terminations,
while ensuring accountability. The request also includes new budget
activities to strengthen the link between resources, workload, and
results.

Single employer benefit payment.--The single-employer program
protects about 34 million participants in about 35,000 pension plans.
Under this program, a company may voluntarily seek to terminate its
plan, or PBGC may seek termination under certain circumstances. The PBGC
must seek termination when a plan cannot pay current benefits.

In a ``standard'' termination, plan assets must be sufficient to pay
all benefits before the plan is allowed to end. That payment is in the
form of an annuity purchased from an insurance company or a lump sum
payment. After the payment is made, the PBGC guarantee ends. A plan that
cannot pay all benefits may be ended by a ``distress'' termination, but
only if the employer meets tests proving severe financial distress, for
example, the likelihood that continuing the plan would force the company
to shut down. If the terminated plan cannot pay at least the PBGC-
guaranteed benefits, the PBGC uses its funds to ensure guaranteed
benefits are paid.

2002 actual 2003 est. 2004 est.
Government trusteeships at end of
year................................ 3,087 3,197 3,307
Participants in government
trusteeships owed benefits.......... 690,000 872,000 922,000
Retirees receiving monthly benefits. 403,000 500,000 525,000

Multi-employer financial assistance.--The multiemployer insurance
program protects about 8.8 million participants in about 1,700 plans.
Multiemployer pension plans are maintained under collectively bargained
agreements involving unrelated employers, generally in the same
industry. If a PBGC-insured multiemployer plan is unable to pay
guaranteed benefits when due, the PBGC will provide the plan with
financial assistance to continue paying guaranteed benefits, ordinarily
in the form of a loan to the plan. Thirty plans are expected to receive
assistance in 2004.

Pension insurance activities.--Includes pension plan premium
collections, premium investments, technical assistance, and new pension
plan promotion activities.

Pension plan termination.--Includes all activities related to plan
termination and trusteeship; plan asset management, investment and
accounting; and benefit administration services.

Operational support.--Includes the administrative, information
technology infrastructure, and other shared program support for both
PBGC's insurance and plan termination activities.

2002 actual 2003 est. 2004 est.
Plans terminated during the year:
With sufficient assets............ 1,214 1,200 1,200
Without sufficient assets......... 157 110 110
Average time to replace initial with
final benefit levels................ 3.3 yrs 3.0 yrs 2.9 yrs

Financing.--The primary source of financing is annual premiums paid
by sponsors of ongoing covered plans, which vary according to the plans'
funding level. Other sources of financing include assets from terminated
plans, investment income, and amounts due PBGC from the sponsors of
terminating plans. Also, PBGC is authorized to borrow up to $100 million
from the U.S. Treasury.

Operating results.--The following tables show the status of PBGC's
trust funds and PBGC's operating results.
STATUS OF TRUST FUNDS

[In thousands of dollars]

2001 actual 2002 actual 2003 est. 2004 est.
Assets:
Cash.......................................... 424,800 679,510 679,510 679,510
Investments................................... 7,092,060 8,484,020 15,821,880 16,524,910
Receivables:
Due from Pension Benefit Guaranty
Corporation............................... 6,310,860 19,357,400 19,849,030 20,658,980
Due from employers--terminated plans........ 1,305,770 6,070,120 29,010 0
Assets of pretrusteed plans................. 577,640 324,810 9,210 270
Other assets................................ 257,140 309,340 284,900 299,060
------------------------------------------------
Total assets............................ 15,968,270 35,225,200 36,673,540 38,162,730
================================================
Liabilities:
Estimate of future benefits--terminated plans. 13,667,660 22,614,960 36,346,190 37,944,140
Estimate of probable terminations (net claims
for)........................................ 1,349,670 12,391,650 108,750 0
Other liabilities............................. 950,940 218,590 218,600 218,590
------------------------------------------------
Total liabilities......................... 15,968,270 35,225,200 36,673,540 38,162,730
================================================

CHANGE IN PBGC's LIABILITY UNDER TERMINATED PLANS

[In thousands2001 actual]2002 actual 2003 est. 2004 est.
Liabilit
y,
beginnin
g of
year... 1,053,060 5,627,170 19,357,400 19,849,030
Liabilit
y
incurred
due to
plan
terminat
ions... 1,070,580 9,923,540 1,065,200 1,070,870
(New liabilities assumed)..................... 3,625,510 14,863,250 8,339,160 2,412,560
(Plan assets acquired)........................ -2,733,170 -4,688,490 -7,217,900 -1,285,330
(Recoveries from employers, net).............. 178,240 -251,220 -56,060 -56,360
Operatin
g loss
of
trust
fund... 3,763,400 4,779,910 1,009,010 1,352,380
Benefit
payments
....... -259,870 -973,220 -1,582,580 -1,613,300
------------------------------------------------
Liability, end of year...................... 5,627,170 19,357,400 19,849,030 20,658,980
================================================

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 16-4204-0-3-601 2001 actual 2002 actual 2003 est. 2004 est.
-----------------------------------------------------------------------------------------------
Revenue:
0101 Premium income.................... 845 812 866 841
0101 Investment income................. 1,703 2,120 924 927
Expense:
0102 Trust fund operating loss......... -3,763 -4,780 -1,009 -1,352
0102 Net liability due to plan
terminations.................... -1,197 -3,402 -7,306 -1,151
0102 Provision for probable
terminations.................... 491 -5,911 6,134 80
0102 Change in allowance for
uncollectible financial
assistance...................... -269 -101 -44 -46

[[Page 659]]

0102 Administrative expenses........... -12 -66 -12
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -2,202 -11,328 -447 -701
------------ -------------- ------------ -------------
0191 Total revenues.................... 2,548 2,932 1,790 1,768
------------ -------------- ------------ -------------
0192 Total expenses.................... -4,750 -14,260 -2,237 -2,469
------------ -------------- ------------ -------------
0199 Total comprehensive income........ -2,202 -11,328 -447 -701
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury.....
Investments in US securities:
Treasury securities, par:
1102 Treasury securities, par.... 11,574 12,834 13,040 13,138
1102 Treasury securities,
unamortized discount (-)/
premium (+)............... 2,346 3,739 3,520 3,571
1106 Receivables, net.............. 154 196 196 196
1206 Non-Federal assets: Receivables,
net............................. 437 120 164 156
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 47 52 58 72
1602 Interest receivable............. 51
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -98 -52 -58 -72
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................
Other Federal assets:

1801 Cash and other monetary assets.. 296 40 40 40
1803 Property, plant and equipment,
net........................... 3 4 4 4
1901 Other assets.................... 182
------------ -------------- ------------ -------------
1999 Total assets.................... 14,992 16,933 16,964 17,105
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 227 279 227 227
2206 Pension and other actuarial
liabilities................... 6,990 20,132 20,662 21,504
------------ -------------- ------------ -------------
2999 Total liabilities............... 7,217 20,411 20,889 21,731
NET POSITION:
3300 Cumulative results of operations.. 7,775 -3,478 -3,925 -4,626
------------ -------------- ------------ -------------
3999 Total net position.............. 7,775 -3,478 -3,925 -4,626
------------ -------------- ------------ -------------
4999 Total liabilities and net position 14,992 16,933 16,964 17,105
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 52 55 59
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation.. 56 59 63
12.1 Civilian personnel benefits....... 13 14 14
21.0 Travel and transportation of
persons......................... 1 1 1
23.2 Rental payments to others......... 14 14 15
23.3 Communications, utilities, and
miscellaneous charges........... 3 4 4
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 125 124 118
25.3 Other purchases of goods and
services from Government
accounts........................ 1 1 1
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 10 6 11
33.0 Investments and loans............. 5 6 14
42.0 Insurance claims and indemnities.. 1,878 2,350 2,961
--------- --------- ----------
99.0 Reimbursable obligations...... 2,108 2,581 3,204
--------- --------- ----------
99.9 Total new obligations........... 2,108 2,581 3,204
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 16-4204-0-3-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 741 752 752
---------------------------------------------------------------------------

EMPLOYMENT STANDARDS ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for the Employment Standards Administration,
including reimbursement to State, Federal, and local agencies and their
employees for inspection services rendered, $308,124,000, together with
$2,056,000 which may be expended from the Special Fund in accordance
with sections 39(c), 44(d) and 44(j) of the Longshore and Harbor
Workers' Compensation Act; and $87,573,000, to be transferred from the
Administrative Expenses Account of the Employees' Compensation Fund, as
authorized by 5 U.S.C. 8147, as amended by section 630 of the Treasury
and General Government Appropriations Act, 2003: Provided, That
$1,250,000 shall be for the development of an alternative system for the
electronic submission of reports required to be filed under the Labor-
Management Reporting and Disclosure Act of 1959, as amended, and for a
computer database of the information for each submission by whatever
means, that is indexed and easily searchable by the public via the
Internet: Provided further, That the Secretary of Labor is authorized to
accept, retain, and spend, until expended, in the name of the Department
of Labor, all sums of money ordered to be paid to the Secretary of
Labor, in accordance with the terms of the Consent Judgment in Civil
Action No. 91-0027 of the United States District Court for the District
of the Northern Mariana Islands (May 21, 1992): Provided further, That
the Secretary of Labor is authorized to establish and, in accordance
with 31 U.S.C. 3302, collect and deposit in the Treasury fees for
processing applications and issuing certificates under sections 11(d)
and 14 of the Fair Labor Standards Act of 1938, as amended (29 U.S.C.
211(d) and 214) and for processing applications and issuing
registrations under title I of the Migrant and Seasonal Agricultural
Worker Protection Act (29 U.S.C. 1801 et seq.).

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0105-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ -7 -14
Appropriations:
05.98 Appropriations.................... -7 -7
--------- --------- ----------
07.99 Balance, end of year.............. -7 -14 -14
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Enforcement of wage and hour
standards....................... 161 171 161
00.02 Federal contractor EEO standards
enforcement..................... 77 78 80
00.03 Federal programs for workers'
compensation.................... 124 44 44
00.04 Program direction and support..... 13 15 16
00.05 Labor-management standards........ 31 35 41
09.01 Reimbursable program.............. 3 4 3
09.41 Reimbursable program--Federal
Employees' Compensation Act..... 86 88
--------- --------- ----------
10.00 Total new obligations........... 409 433 433
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 8
22.00 New budget authority (gross)...... 411 423 433
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 419 431 433
23.95 Total new obligations............. -409 -433 -433
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 369 292 308
40.71 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 368 292 308
Mandatory:

60.20 Appropriation (special fund).... 7 7

[[Page 660]]

Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 36 38 37
68.62 Transferred from other
accounts.................... 86 88
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 36 124 125
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 411 423 433
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 36 36 35
73.10 Total new obligations............. 409 433 433
73.20 Total outlays (gross)............. -409 -434 -432
74.40 Obligated balance, end of year.... 36 35 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 375 390 406
86.93 Outlays from discretionary
balances........................ 28 29 26
86.97 Outlays from new mandatory
authority....................... 7
86.98 Outlays from mandatory balances... 6 8
--------- --------- ----------
87.00 Total outlays (gross)........... 409 434 432
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -34 -36 -35
88.40 Non-Federal sources........... -2 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -36 -38 -37
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 375 385 396
90.00 Outlays........................... 372 396 395
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 20 20 22
99.01 Outlays........................... 20 20 22
---------------------------------------------------------------------------

Enforcement of wage and hour standards.--The Wage and Hour Division
works to obtain and encourage compliance with the minimum wage,
overtime, child labor, and other employment standards under the Fair
Labor Standards Act, the Migrant and Seasonal Agricultural Worker
Protection Act (MSPA), the Family and Medical Leave Act, certain
provisions of the Immigration and Nationality Act, the wage garnishment
provisions in Title III of the Consumer Credit Protection Act, and the
Employee Polygraph Protection Act. Prevailing wages are determined and
employment standards enforced under various Government contract wage
standards. In 2004, approximately 241,500 persons are expected to be
aided under the Fair Labor Standards Act through securing agreements
with firms to pay back wages owed to their workers. In government
contract compliance actions, about 23,500 persons will be aided through
securing agreements to pay wages owed to workers. Under MSPA,
approximately 2,000 investigations and 900 housing inspections will be
completed. In the course of all on-site investigations, investigators
will routinely check for employer compliance with child labor standards
and, in all ``directed'' (non-complaint) investigations, for compliance
with the employment eligibility verification recordkeeping requirements
of the Immigration and Nationality Act. The Budget maintains resources
for the Wage and Hour Division which are assigned to areas where
employment of illegal immigrants is most prevalent. The targeting of
labor standards enforcement efforts in those industries and geographic
areas where unauthorized workers are most prevalent will help to reduce
the economic incentive for such illegal employment practices and will,
in turn, help reduce illegal immigration.

Federal contractor Equal Employment Opportunity (EEO) standards
enforcement.--The Office of Federal Contract Compliance Programs (OFCCP)
enforces equal employment opportunity and nondiscrimination requirements
of Federal contractors and subcontractors. In particular, OFCCP
enforces: Executive Order 11246, which prohibits employment
discrimination on the basis of race, sex, religion, color, and national
origin; Section 503 of the Rehabilitation Act of 1973 and the Americans
with Disabilities Act of 1990 (through a memorandum of understanding
with the Equal Employment Opportunity Commission), which prohibit
employment discrimination against individuals with disabilities; and the
Vietnam Era Veterans Readjustment Assistance Act of 1974, as amended,
which prohibits employment discrimination against certain protected
veterans. OFCCP programs cover close to 200,000 work-sites with a total
workforce of 26 million persons.

OFCCP monitors contractors' compliance through various levels of
reviews and reporting requirements. In 2004, approximately 2,060,000
individuals will be aided through 6,250 compliance reviews, 279
complaint investigations, and 2,934 other compliance actions.

OFCCP also encourages and supports voluntary compliance by providing
compliance assistance to covered contractors. OFCCP has implemented a
compliance assistance program available to all Federal contractors and
subcontractors. For example, as part of its compliance assistance
program, OFCCP provides technical assistance in understanding regulatory
requirements to contractors through Industrial Liaison Groups. In
addition, OFCCP has placed important compliance assistance information
on the Internet. OFCCP also ensures that Federal contractors and
subcontractors are provided linkages to recruitment sources for hiring
and advancement of minorities, women, protected veterans and individuals
with disabilities. OFCCP honors Federal contractors and linkage
organizations through the Secretary of Labor Opportunity Awards and the
EVE/EPIC program for their outstanding compliance initiatives.

Federal programs for workers' compensation.--Under this activity,
the Employment Standards Administration administers the Federal
Employees' Compensation Act, the Longshore and Harbor Workers'
Compensation Act, the Energy Employees Occupational Illness Compensation
Program Act, and the benefit provisions of the Federal Mine Safety and
Health Act of 1977. These programs ensure that eligible disabled and
injured workers or their survivors receive compensation and medical
benefits and a range of services including rehabilitation, supervision
of medical care, and technical and advisory counseling to which they are
entitled. OWCP also monitors State workers' compensation laws.

The Administration has included in the 2004 Budget, an amendment to
the Federal Employees' Compensation Act (FECA) that would allow the
Department of Labor to add an administrative surcharge to the amount
billed to Federal agencies for their FECA compensation costs, thereby
shifting FECA administrative costs to agencies in proportion to their
program usage. This proposal is discussed in further detail in the
Special Benefits account narrative.

Program direction and support.--This activity directs the various
units that support the Employment Standards Administration's operating
programs and helps ensure effective management of these programs through
planning, personnel management, financial management, and Federal/State
liaison programs. Major goals in 2004 will include continued efforts to
eliminate internal fraud, waste, and mismanagement; improvement of
management information, automated data processing, and program and
fiscal accountability; and legislative and regulatory improvements.

Labor-management standards.--The Office of Labor-Management
Standards (OLMS) receives and discloses statutorily

[[Page 661]]

required reports required of unions and others, including union
financial reports; audits union financial records and investigates
possible embezzlements of union funds; conducts union officer election
investigations; supervises reruns of union officer elections pursuant to
voluntary settlements or after court determinations that elections were
not conducted in accordance with the Labor-Management Reporting and
Disclosure Act; and administers the statutory program to certify
employee protection provisions under various federally-sponsored
transportation programs. In 2004, OLMS plans enhanced efforts to advance
union financial integrity protections, primarily through increased union
audits and compliance assistance efforts. OLMS expects to process 36,000
reports and conduct a total of 4,582 investigations, audits, and
supervised elections.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 221 187 191
11.3 Other than full-time permanent 2
11.5 Other personnel compensation.. 5 2 2
--------- --------- ----------
11.9 Total personnel compensation 228 189 193
12.1 Civilian personnel benefits..... 54 45 46
21.0 Travel and transportation of
persons....................... 7 8 8
23.1 Rental payments to GSA.......... 26 21 23
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 7 5 5
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 2
25.2 Other services.................. 3 6 6
25.3 Other purchases of goods and
services from Government
accounts...................... 36 25 28
25.7 Operation and maintenance of
equipment..................... 28 27 25
26.0 Supplies and materials.......... 3 1 1
31.0 Equipment....................... 4 4 5
--------- --------- ----------
99.0 Direct obligations............ 400 333 342
99.0 Reimbursable obligations.......... 2 89 91
Allocation Account:

Personnel compensation:
11.1 Full-time permanent........... 2 4
11.3 Other than full-time permanent 1
--------- --------- ----------
11.9 Total personnel compensation 2 5
12.1 Civilian personnel benefits..... 1 1
25.1 Advisory and assistance services 1
25.2 Other services.................. 2
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1
25.7 Operation and maintenance of
equipment..................... 1 2
--------- --------- ----------
99.0 Allocation account............ 6 11
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 409 433 433
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 16-0105-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3,756 2,913 2,991
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 16 843 839
---------------------------------------------------------------------------

Special Benefits

(including transfer of funds)

For the payment of compensation, benefits, and expenses (except
administrative expenses) accruing during the current or any prior fiscal
year authorized by title 5, chapter 81 of the United States Code;
continuation of benefits as provided for under the heading ``Civilian
War Benefits'' in the Federal Security Agency Appropriation Act, 1947;
the Employees' Compensation Commission Appropriation Act, 1944; sections
4(c) and 5(f) of the War Claims Act of 1948 (50 U.S.C. App. 2012); and
50 percent of the additional compensation and benefits required by
section 10(h) of the Longshore and Harbor Workers' Compensation Act, as
amended, $163,000,000, together with such amounts as may be necessary to
be charged to the subsequent year appropriation for the payment of
compensation and other benefits for any period subsequent to August 15
of the current year: Provided, That amounts appropriated may be used
under section 8104 of title 5, United States Code, by the Secretary of
Labor to reimburse an employer, who is not the employer at the time of
injury, for portions of the salary of a reemployed, disabled
beneficiary: Provided further, That balances of reimbursements
unobligated on September 30, 2003, shall remain available until expended
for the payment of compensation, benefits, and expenses: Provided
further, That in addition there shall be transferred to this
appropriation from the Postal Service and from any other corporation or
instrumentality required under section 8147(c) of title 5, United States
Code, to pay an amount for its fair share of the cost of administration,
such sums as the Secretary determines to be the cost of administration
for employees of such fair share entities through September 30, 2004:
Provided further, That of those funds transferred to this account from
the fair share entities to pay the cost of administration of the Federal
Employees' Compensation Act, $39,315,000 shall be made available to the
Secretary as follows: (1) for enhancement and maintenance of the
automated data processing and telecommunications systems, $11,618,000;
(2) for automated workload processing operations, including document
imaging, centralized mail intake, and medical bill processing,
$14,496,000; (3) for periodic roll management and medical review,
$13,201,000; and (4) the remaining funds shall be paid into the Treasury
as miscellaneous receipts: Provided further, That the Secretary may
require that any person filing a notice of injury or a claim for
benefits under chapter 81 of title 5, United States Code, or 33 U.S.C.
901 et seq., provide as part of such notice and claim, such identifying
information (including Social Security account number) as such
regulations may prescribe.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Longshore and harbor workers'
compensation benefits........... 3 3 3
00.02 Federal Employees' Compensation
Act benefits.................... 2,337 2,376 2,532
--------- --------- ----------
10.00 Total new obligations........... 2,340 2,379 2,535
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 991 981 970
22.00 New budget authority (gross)...... 2,328 2,368 2,479
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,320 3,349 3,449
23.95 Total new obligations............. -2,340 -2,379 -2,535
24.40 Unobligated balance carried
forward, end of year............ 981 970 914
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 121 163 163
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 86 88
68.61 Transferred to other accounts. -86 -88
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary).....
Mandatory:

69.00 Offsetting collections (cash)... 2,207 2,205 2,316
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,328 2,368 2,479
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 122 80 80
73.10 Total new obligations............. 2,340 2,379 2,535
73.20 Total outlays (gross)............. -2,381 -2,379 -2,535
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 80 80 80
----------------------------------------------------------------------------

[[Page 662]]

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,390 1,398 1,565
86.98 Outlays from mandatory balances... 991 981 970
--------- --------- ----------
87.00 Total outlays (gross)........... 2,381 2,379 2,535
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Federal sources:
88.00 Federal sources............. -1,389 -1,435 -1,462
88.00 Federal sources............. -86 -88
88.40 Non-Federal sources........... -818 -770 -854
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,207 -2,291 -2,404
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 121 77 75
90.00 Outlays........................... 174 88 131
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 1 1 1
99.01 Outlays........................... 1 1 1
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 121 77 75
Outlays........................... 174 88 131
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -8
Outlays........................... -10
------------------------------------
Total:
Budget Authority.................. 121 77 67
Outlays........................... 174 88 121
====================================

Federal Employees' Compensation Act benefits.--The Federal
Employees' Compensation Act program provides monetary and medical
benefits to Federal workers who sustain work-related injury or disease.
Not all benefits are paid by the program, since the first 45 days of
disability are usually covered by keeping injured workers in pay status
with their employing agencies (the continuation-of-pay period). In 2004,
155,000 injured federal workers or their survivors will file claims;
55,500 will receive long-term wage replacement benefits for job-related
injuries, diseases, or deaths. Most of the costs of this account are
charged back to the beneficiaries' employing agencies.

The Administration has included in the 2004 Budget an amendment to
the Federal Employees' Compensation Act that would allow the Department
of Labor to add an administrative surcharge to the amount billed to
Federal agencies for their FECA compensation costs, thereby shifting
FECA administrative costs from the Department to federal agencies in
proportion to their program usage. The 2004 level for each affected
agency includes funding for the estimated 2004 surcharge. In subsequent
years, agencies dependent upon an annual appropriation would include in
their annual budget estimates the total amount of the Chargeback bills,
which would include the surcharge amounts. The Chargeback bills are sent
by ESA to Federal agencies in mid-August of each year covering each
agency's workers' compensation costs from July 1 of the previous year
through June 30 of the current year. The legislation would produce
estimated government-wide benefit savings of more than $80 million over
ten years.

FEDERAL EMPLOYEES' COMPENSATION WORKLOAD

2002 actual 2003 est. 2004 est.
Wage-loss claims received........... 23,193 23,000 21,000
Compensation and medical payments... 3,548,511 3,500,000 3,500,000
Cases received...................... 158,118 158,000 155,000
Periodic payment cases.............. 56,797 56,000 55,500

Longshore and harbor workers' compensation benefits.--Under the
Longshore and Harbor Workers' Compensation Act, as amended, the Federal
Government pays from direct appropriations one-half of the increased
benefits provided by the amendments for persons on the rolls prior to
1972. The remainder is provided from the special fund which is financed
by private employers assessed at the beginning of each calendar year for
their proportionate share of these payments.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1521-0-1-600 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 7 8 8
12.1 Civilian personnel benefits....... 2 2 2
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1
25.2 Other services.................... 5
25.3 Other purchases of goods and
services from Government
accounts........................ 3 21 5
25.7 Operation and maintenance of
equipment....................... 14 14 14
31.0 Equipment......................... 2 3 3
42.0 Insurance claims and indemnities.. 2,311 2,329 2,496
--------- --------- ----------
99.9 Total new obligations........... 2,340 2,379 2,535
---------------------------------------------------------------------------

Personnel Summary

Special Benefits

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1521-4-1-600 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.02 Federal Employees' Compensation
Act benefits.................... -13
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... -13
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -11
23.95 Total new obligations............. 13
24.40 Unobligated balance carried
forward, end of year............ 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -8
69.00 Offsetting collections (cash)..... -3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -11
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -13
73.20 Total outlays (gross)............. 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -13
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -8
90.00 Outlays........................... -10
---------------------------------------------------------------------------

[[Page 663]]

The Administration will propose legislation to strengthen program
integrity and make the Act more equitable and easier to administer by:
1) converting compensation for new injuries or new claims for disability
to a lower retirement-level benefit at age 65; 2) moving the 3-day
waiting period, during which an injured worker is not entitled to
compensation, to the point immediately after an injury; 3) changing the
way schedule awards are paid to allow uniform lump-sum payments to
federal employees eligible for such awards; 4) replacing augmented
compensation for dependents with a slightly higher basic benefit level
for all claimants; 5) allowing OWCP to recover the costs of continuation
of pay (COP), a large annual expenditure for federal agencies, from
responsible third parties; and 6) updating benefit levels for funeral
expenses and disfigurement resulting from work injury.

Energy Employees Occupational Illness Compensation Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Benefits for energy employees..... 259 645 359
00.02 RECA supplemental benefits........ 92 37 26
09.00 Reimbursable program.............. 1
--------- --------- ----------
10.00 Total new obligations........... 352 682 385
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 357 31
22.00 New budget authority (gross)...... 27 651 385
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 384 682 385
23.95 Total new obligations............. -352 -682 -385
24.40 Unobligated balance carried
forward, end of year............ 31
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 26 651 385
69.00 Offsetting collections (cash)..... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 27 651 385
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6 6
73.10 Total new obligations............. 352 682 385
73.20 Total outlays (gross)............. -348 -682 -385
74.40 Obligated balance, end of year.... 6 6 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 651 385
86.98 Outlays from mandatory balances... 347 31
--------- --------- ----------
87.00 Total outlays (gross)........... 348 682 385
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.20 Offsetting collections (cash)
from: Interest on Federal
securities.................... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 26 651 385
90.00 Outlays........................... 347 682 385
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 302
---------------------------------------------------------------------------

Energy Employees' Compensation Act benefits.--The Department of
Labor is delegated responsibility to adjudicate and administer claims
for benefits under the Energy Employees Occupational Illness
Compensation Program Act of 2000. In July 2001, the Program began
accepting claims from employees or survivors of employees of the
Department of Energy (DOE) and of private companies under contract with
DOE who suffer from a radiation-related cancer, beryllium-related
disease, or chronic silicosis as a result of their work in producing or
testing nuclear weapons. The Act authorizes a lump-sum payment of
$150,000 and reimbursement of medical expenses.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1523-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
42.0 Direct obligations: Insurance
claims and indemnities.......... 351 682 385
99.0 Reimbursable obligations:
Reimbursable obligations........ 1
--------- --------- ----------
99.9 Total new obligations........... 352 682 385
---------------------------------------------------------------------------

Administrative Expenses, Energy Employees Occupational Illness
Compensation Fund

(including transfer of funds)

For necessary expenses to administer the Energy Employees
Occupational Illness Compensation Act, $55,074,000, to remain available
until expended: Provided, That the Secretary of Labor is authorized to
transfer to any Executive agency with authority under the Energy
Employees Occupational Illness Compensation Act, including within the
Department of Labor, such sums as may be necessary in fiscal year 2004
to carry out those authorities: Provided further, That the Secretary may
require that any person filing a claim for benefits under the Act
provide as part of such claim, such identifying information (including
Social Security account number) as may be prescribed.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1524-0-1-053 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 73 119 134
--------- --------- ----------
10.00 Total new obligations........... 73 119 134
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 34 93 79
22.00 New budget authority (gross)...... 131 105 55
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 165 198 134
23.95 Total new obligations............. -73 -119 -134
24.40 Unobligated balance carried
forward, end of year............ 93 79
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 136 105 55
60.76 Reduction pursuant to P.L. 107-
206........................... -5
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 131 105 55
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 49 40
73.10 Total new obligations............. 73 119 134
73.20 Total outlays (gross)............. -34 -128 -146
74.40 Obligated balance, end of year.... 49 40 28
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 24 84 44
86.98 Outlays from mandatory balances... 10 44 102
--------- --------- ----------
87.00 Total outlays (gross)........... 34 128 146
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 131 105 55
90.00 Outlays........................... 34 128 146
----------------------------------------------------------------------------

Energy Employees Occupational Illness Compensation Program Act of
2000 (EEOICPA) administration.--Under Executive Order 13179 the
Secretary of Labor is assigned primary responsibility for administering
the Energy Employees Com

[[Page 664]]

pensation program, while other responsibilities have been delegated to
the Departments of Health and Human Services (HHS), Energy (DOE), and
Justice (DOJ). The Office of Workers' Compensation Programs (OWCP) in
the Department of Labor is responsible for claims adjudication, and
award and payment of compensation and medical benefits. The Office of
the Solicitor provides legal support and represents the Department in
claimant appeals of OWCP decisions. HHS is responsible for developing
individual dose reconstructions to estimate occupational radiation
exposure, and developing regulations to guide DOL's determination of
whether an individual's cancer was caused by radiation exposure at a DOE
or atomic weapons facility. DOE is responsible for providing exposure
histories at employment facilities covered under the Act, as well as
other employment information. DOJ assists claimants who have been
awarded compensation under the Radiation Exposure Compensation Act
(RECA) to file for additional compensation, including medical benefits,
under EEOICPA.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 11 21 21
12.1 Civilian personnel benefits..... 3 6 6
21.0 Travel and transportation of
persons....................... 1 1 1
23.1 Rental payments to GSA.......... 2 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 1 4 4
25.3 Other purchases of goods and
services from Government
accounts...................... 46 68 83
25.7 Operation and maintenance of
equipment..................... 6 7 7
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 6 6
--------- --------- ----------
99.0 Direct obligations............ 73 118 133
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 73 119 134
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 191 380 380
---------------------------------------------------------------------------

Special Benefits for Disabled Coal Miners

For carrying out title IV of the Federal Mine Safety and Health Act
of 1977, as amended by P.L. 107-275, (the ``Act''), $300,000,000, to
remain available until expended.
For making after July 31 of the current fiscal year, benefit payment
to individuals under title IV of the Act, for costs incurred in the
current fiscal year, such amounts as may be necessary.
For making benefit payments under title IV of the first quarter of
fiscal year 2005, $88,000,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 451 432 397
--------- --------- ----------
10.00 Total new obligations........... 451 432 397
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 13 11 11
22.00 New budget authority (gross)...... 447 432 397
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 462 443 408
23.95 Total new obligations............. -451 -432 -397
24.40 Unobligated balance carried
forward, end of year............ 11 11 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 333 324 300
65.00 Advance appropriation........... 114 108 97
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 447 432 397
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 41 38 38
73.10 Total new obligations............. 451 432 397
73.20 Total outlays (gross)............. -452 -432 -399
73.45 Recoveries of prior year
obligations..................... -2
74.40 Obligated balance, end of year.... 38 38 35
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 414 397 364
86.98 Outlays from mandatory balances... 38 35 35
--------- --------- ----------
87.00 Total outlays (gross)........... 452 432 399
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 447 432 397
90.00 Outlays........................... 452 432 399
---------------------------------------------------------------------------

Title IV of the Federal Mine Safety and Health Act authorizes
monthly benefits to coal miners disabled from coal workers'
pneumoconiosis (black lung) and to their widows and certain other
dependents. Part B of the Act assigned the processing and paying of
claims filed between December 30, 1969 (when the program originated) and
June 30, 1973 to the Social Security Administration (SSA). P.L. 107-275
transferred Part B claims processing and payment operations from SSA to
the Department of Labor's (DOL) Employment Standards Administration
(ESA), Office of Workers' Compensation Programs, with an effective date
of February 1, 2003.

Object Classification (in millions of dollars)

Direct obligations:

11.5 Personnel compensation: Other
personnel compensation........ 1 2 2
25.2 Other services.................. 4 4
25.3 Other purchases of goods and
services from Government
accounts...................... 3
42.0 Insurance claims and indemnities 446 426 391
--------- --------- ----------
99.0 Direct obligations............ 450 432 397
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 451 432 397
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 16-0169-0-1-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 13 17
---------------------------------------------------------------------------

Panama Canal Commission Compensation Fund

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-5155-0-2-602 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............

[[Page 665]]

Receipts:
02.41 Interest on investments, Panama
Canal Comm., Labor.............. 6 7 6
Appropriations:
05.00 Panama Canal Commission
compensation fund............... -6 -7 -6
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 6 7 6
--------- --------- ----------
10.00 Total new obligations (object
class 42.0)................... 6 7 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 77 77 77
22.00 New budget authority (gross)...... 6 7 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 83 84 83
23.95 Total new obligations............. -6 -7 -6
24.40 Unobligated balance carried
forward, end of year............ 77 77 77
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 6 7 6
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 6 7 6
73.20 Total outlays (gross)............. -6 -7 -6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 6 7 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 7 6
90.00 Outlays........................... 6 7 6
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 77 77 77
92.02 Total investments, end of year:
Federal securities: Par value... 77 77 77
---------------------------------------------------------------------------

This fund was established to provide for the accumulation of funds
to meet the Panama Canal Commission's obligations to defray costs of
workers' compensation which will accrue pursuant to the Federal
Employees' Compensation Act (FECA). On December 31, 1999, the Commission
was dissolved as set forth in the Panama Canal Treaty of 1977, and the
liability of the Commission for payments beyond that date did not end
with its termination. The establishment of this fund, into which funds
were deposited on a regular basis by the Commission, was in conjunction
with the transfer of the administration of the FECA program from the
Commission to the Department of Labor effective January 1, 1989.

Trust Funds

Black Lung Disability Trust Fund

(including transfer of funds)

Beginning in fiscal year 2004 and thereafter, such sums as may be
necessary from the Black Lung Disability Trust Fund, to remain available
until expended, for payment of all benefits authorized by section
9501(d)(1), (2), (4), and (7) of the Internal Revenue Code of 1954, as
amended; and interest on advances, as authorized by section 9501(c)(2)
of that Act. In addition, the following amounts shall be available from
the Fund for fiscal year 2004 for expenses of operation and
administration of the Black Lung Benefits program, as authorized by
section 9501(d)(5): $32,004,000 for transfer to the Employment Standards
Administration, ``Salaries and Expenses''; $23,401,000 for transfer to
Departmental Management, ``Salaries and Expenses''; $338,000 for
transfer to Departmental Management, ``Office of Inspector General'';
and $356,000 for payments into miscellaneous receipts for the expenses
of the Department of Treasury.

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8144-0-7-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 38 39
Receipts:
02.00 Transfer from general fund, Black
Lung Benefits Revenue Act taxes. 567 561 574
02.20 Miscellaneous interest............ 1 2 2
02.40 Payment from the general fund for
prepayment premium, legislative
proposal........................ 2,318
--------- --------- ----------
02.99 Total receipts and collections.. 568 563 2,894
--------- --------- ----------
04.00 Total: Balances and collections... 606 602 2,894
Appropriations:
Appropriations:

05.00 Administrative Expenses......... -567 -602 -576
05.00 Legislative proposal not subject
to PAYGO...................... -2,318
--------- --------- ----------
05.99 Total appropriations............ -567 -602 -2,894
--------- --------- ----------
07.99 Balance, end of year.............. 39
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Disabled coal miners benefits..... 382 367 347
00.02 Administrative expenses........... 54 55 56
00.03 Interest on advances.............. 596 621 640
--------- --------- ----------
10.00 Total new obligations........... 1,032 1,043 1,043
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,032 1,043 1,043
23.95 Total new obligations............. -1,032 -1,043 -1,043
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

Appropriation (trust fund):
60.26 Appropriation (trust fund,
definite)................... 55 55 56
60.26 Appropriation (trust fund,
indefinite)................. 512 547 520
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 567 602 576
67.10 Authority to borrow............. 465 441 467
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,032 1,043 1,043
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1,032 1,043 1,043
73.20 Total outlays (gross)............. -1,032 -1,043 -1,043
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,032 1,043 1,043
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,032 1,043 1,043
90.00 Outlays........................... 1,032 1,043 1,043
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 3 3 3
99.01 Outlays........................... 3 3 3
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2002 actual 2003 est. 2004 est.
Enacted/requested:
Budget Authority.................. 1,032 1,043 1,043
Outlays........................... 1,032 1,043 1,043
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 1,851
Outlays........................... 1,851
------------------------------------
Total:
Budget Authority.................. 1,032 1,043 2,894
Outlays........................... 1,032 1,043 2,894
====================================

The trust fund consists of all moneys collected from the coal mine
industry under the provisions of the Black Lung

[[Page 666]]

Benefits Revenue Act of 1981, as amended by the Consolidated Omnibus
Budget Reconciliation Act of 1985, in the form of an excise tax on mined
coal. These moneys are expended to pay compensation, medical, and
survivor benefits to eligible miners and their survivors, where mine
employment terminated prior to 1970 or where no mine operator can be
assigned liability. In addition, the fund pays all administrative costs
incurred in the operation of part C of the Black Lung program. The fund
is administered jointly by the Secretaries of Labor, the Treasury, and
Health and Human Services. The Benefits Revenue Act provides for
repayable advances to the fund in the event fund resources will not be
adequate to meet program obligations. Such advances are to be repaid
with interest. The outstanding debt at the end of each year was: 1981,
$1,510 million; 1982, $1,793 million; 1983, $2,151 million; 1984, $2,497
million; 1985, $2,833 million; 1986, $2,884 million; 1987, $2,952
million; 1988, $2,993 million; 1989, $3,049 million; 1990, $3,049
million; 1991, $3,266 million; 1992, $3,606 million; 1993, $3,949
million; 1994, $4,363 million; 1995, $4,738 million; 1996, $5,112
million; 1997, $5,487 million; 1998, $5,857 million; 1999, $6,259
million; and 2000, $6,749 million; 2001, $7,254 million; and 2002,
$7,719 million. It is estimated to be $8,160 million in 2003 and $8,627
million in 2004 if the refinancing proposal is not enacted.

BLACK LUNG DISABILITY TRUST FUND WORKLOAD

2002 actual 2003 est. 2004 est.

Claims received..................... 8,060 6,500 6,100
Claims in payment status............ 45,567 43,250 40,750
Medical benefits only recipients.... 6,285 5,750 3,750

Status of Funds (in millions of dollars)

Receipts:
1200 Transfer from general fund,
Black Lung Benefits Revenue
Act taxes................... 567 561 574
Offsetting receipts
(proprietary):
1220 Miscellaneous interest, Black
Lung fund................... 1 2 2
--------- --------- ----------
1299 Income under present law...... 568 563 576
Proposed legislation:

Offsetting receipts
(intragovernmental):
2240 Payment from the general fund
for prepayment premium,
legislative proposal not
subject to PAYGO............ 2,318
--------- --------- ----------
3299 Total cash income............... 568 563 2,894
Cash outgo during year:
Current law:

4500 Black lung disability trust fund -1,032 -1,043 -1,043
Proposed legislation:

5500 Legislative proposal, not
subject to PAYGO.............. -1,851
--------- --------- ----------
6599 Total cash outgo (-)............ -1,032 -1,043 -2,894
Unexpended balance, end of year:
8700 Uninvested balance................ 39
8705 Outstanding debt to Treasury...... -7,719 -8,160 -8,160
--------- --------- ----------
8799 Total balance, end of year...... -7,680 -8,160 -8,160
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8144-0-7-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 54 55 56
42.0 Insurance claims and indemnities.. 382 367 347
43.0 Interest and dividends............ 596 621 640
--------- --------- ----------
99.9 Total new obligations........... 1,032 1,043 1,043
---------------------------------------------------------------------------

Black Lung Disability Trust Fund

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8144-2-7-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.03 Interest on advances.............. -640
00.04 Repayment of debt principal....... 173
00.05 One-time prepayment premium....... 2,318
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 1,851
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,851
23.95 Total new obligations............. -1,851
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 2,318
67.10 Authority to borrow............. -467
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,851
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1,851
73.20 Total outlays (gross)............. -1,851
----------------------------------------------------------------------------

Outlays (gross), detail:
Outlays (gross), detail:

86.97 Outlays from new mandatory
authority..................... 1,851
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,851
90.00 Outlays........................... 1,851
---------------------------------------------------------------------------

The Black Lung Disability Trust Fund (BLDTF) revenues, which consist
primarily of excise taxes on coal, are not sufficient to repay the over
$8 billion debt it owes to the Treasury or to service the interest on
that debt. Under current conditions, this indebtedness will continue to
grow, with the BLDTF never becoming solvent, even when benefit outlays
have declined to a level approaching zero. To solve this problem, the
Administration will propose legislation that will: (1) authorize a
refinancing (debt restructuring) of the outstanding BLDTF debt, (2)
extend at current rates BLDTF excise tax levels (set to expire in
January 2014) until solvency is attained, and (3) provide for a one-time
appropriation to compensate the General Fund for the lost interest
income.

Special Workers' Compensation Expenses

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-9971-0-7-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
Receipts:
02.00 Longshoremen's & harbor workers
compensation act, receipts,
special worker.................. 136 137 138
02.01 Workmen's compensation act within
district of columbia, receipts,
special......................... 12 11 11
02.40 Longshoremen's & harbor workers
compensation act, earnings on
investments,.................... 1 3 3
--------- --------- ----------
02.99 Total receipts and collections.. 149 151 152
Appropriations:
05.00 Special workers' compensation
expenses........................ -149 -151 -152
--------- --------- ----------
05.99 Total appropriations............ -149 -151 -152
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

[[Page 667]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Longshore and harbor workers'
compensation act, as amended.... 133 136 137
00.02 District of columbia compensation
act............................. 11 11 11
--------- --------- ----------
10.00 Total new obligations........... 144 147 148
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 63 68 72
22.00 New budget authority (gross)...... 149 151 152
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 212 219 224
23.95 Total new obligations............. -144 -147 -148
24.40 Unobligated balance carried
forward, end of year............ 68 72 76
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.26 Appropriation (trust fund)...... 2 2 2
Mandatory:

60.26 Appropriation (trust fund)...... 147 149 150
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 149 151 152
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 2 2
73.10 Total new obligations............. 144 147 148
73.20 Total outlays (gross)............. -144 -147 -148
74.40 Obligated balance, end of year.... 2 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2 2
86.97 Outlays from new mandatory
authority....................... 79 77 74
86.98 Outlays from mandatory balances... 63 68 72
--------- --------- ----------
87.00 Total outlays (gross)........... 144 147 148
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 149 151 152
90.00 Outlays........................... 144 147 148
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 65 69 73
92.02 Total investments, end of year:
Federal securities: Par value... 69 73 77
---------------------------------------------------------------------------

The trust funds consist of amounts received from employers for the
death of an employee where no person is entitled to compensation for
such death, for fines and penalty payments, and pursuant to an annual
assessment of the industry, for the general expenses of the fund under
the Longshore and Harbor Workers' Compensation Act, as amended.

These trust funds are available for payments of additional
compensation for second injuries. When a second injury is combined with
a previous disability and results in increased permanent partial
disability, permanent total disability, or death, the employer's
liability for benefits is limited to a specified period of compensation
payments after which the fund provides continuing compensation benefits.
In addition, the fund pays one-half of the increased benefits provided
under the Longshore and Harbor Workers' Compensation Act, as amended,
for persons on the rolls prior to 1972. Maintenance payments are made to
disabled employees undergoing vocational rehabilitation to enable them
to return to remunerative occupations, and the costs of necessary
rehabilitation services not otherwise available to disabled workers are
defrayed. Payments are made in cases where other circumstances preclude
payment by an employer and to provide medical, surgical, and other
treatment in disability cases where there has been a default by the
insolvency of an uninsured employer.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-9971-0-7-601 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 2
42.0 Insurance claims and indemnities.. 142 145 146
--------- --------- ----------
99.9 Total new obligations........... 144 147 148
---------------------------------------------------------------------------

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for the Occupational Safety and Health
Administration, $450,008,000, including not to exceed $91,747,000 which
shall be the maximum amount available for grants to States under section
23(g) of the Occupational Safety and Health Act (the ``Act''), which
grants shall be no less than 50 percent of the costs of State
occupational safety and health programs required to be incurred under
plans approved by the Secretary under section 18 of the Act; and, in
addition, notwithstanding 31 U.S.C. 3302, the Occupational Safety and
Health Administration may retain up to $750,000 per fiscal year of
training institute course tuition fees, otherwise authorized by law to
be collected, and may utilize such sums for occupational safety and
health training and education grants: Provided, That, notwithstanding 31
U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal
year ending September 30, 2004, to collect and retain fees for services
provided to Nationally Recognized Testing Laboratories, and may utilize
such sums, in accordance with the provisions of 29 U.S.C. 9a, to
administer national and international laboratory recognition programs
that ensure the safety of equipment and products used by workers in the
workplace: Provided further, That none of the funds appropriated under
this paragraph shall be obligated or expended to prescribe, issue,
administer, or enforce any standard, rule, regulation, or order under
the Act which is applicable to any person who is engaged in a farming
operation which does not maintain a temporary labor camp and employs 10
or fewer employees: Provided further, That no funds appropriated under
this paragraph shall be obligated or expended to administer or enforce
any standard, rule, regulation, or order under the Act with respect to
any employer of 10 or fewer employees who is included within a category
having an occupational injury lost workday case rate, at the most
precise Standard Industrial Classification Code for which such data are
published, less than the national average rate as such rates are most
recently published by the Secretary, acting through the Bureau of Labor
Statistics, in accordance with section 24 of that Act (29 U.S.C. 673),
except--
(1) to provide, as authorized by such Act, consultation,
technical assistance, educational and training services, and to
conduct surveys and studies;
(2) to conduct an inspection or investigation in response to an
employee complaint, to issue a citation for violations found during
such inspection, and to assess a penalty for violations which are
not corrected within a reasonable abatement period and for any
willful violations found;
(3) to take any action authorized by such Act with respect to
imminent dangers;
(4) to take any action authorized by such Act with respect to
health hazards;
(5) to take any action authorized by such Act with respect to a
report of an employment accident which is fatal to one or more
employees or which results in hospitalization of two or more
employees, and to take any action pursuant to such investigation
authorized by such Act; and
(6) to take any action authorized by such Act with respect to
complaints of discrimination against employees for exercising rights
under such Act:
Provided further, That the foregoing proviso shall not apply to any
person who is engaged in a farming operation which does not maintain a
temporary labor camp and employs 10 or fewer employees.

[[Page 668]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0400-0-1-554 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Safety and health standards....... 16 14 14
00.02 Federal enforcement............... 162 161 165
00.03 State programs.................... 90 90 92
00.04 Technical support................. 20 20 22
00.05 Federal compliance assistance..... 59 60 67
00.06 State consultation grants......... 51 53 53
00.07 Training grants................... 11 4 4
00.08 Safety and health statistics...... 26 26 23
00.09 Executive direction and
administration.................. 9 9 10
09.01 Reimbursable program.............. 2 2 4
--------- --------- ----------
10.00 Total new obligations........... 446 439 454
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 445 439 454
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 446 439 454
23.95 Total new obligations............. -446 -439 -454
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 445 437 450
40.71 Reduction pursuant to P.L. 107-
116........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 444 437 450
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 2 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 445 439 454
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 98 99 98
73.10 Total new obligations............. 446 439 454
73.20 Total outlays (gross)............. -437 -440 -452
73.40 Adjustments in expired accounts
(net)........................... -7
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
74.40 Obligated balance, end of year.... 99 98 99
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 367 369 382
86.93 Outlays from discretionary
balances........................ 70 71 70
--------- --------- ----------
87.00 Total outlays (gross)........... 437 440 452
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -1 -3
88.40 Non-Federal sources........... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2 -2 -4
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 444 437 450
90.00 Outlays........................... 436 438 448
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 14 12 14
99.01 Outlays........................... 14 12 14
---------------------------------------------------------------------------

Safety and health standards.--This activity provides for the
development, promulgation, review and evaluation of feasible
occupational safety and health standards and guidance. Before any
standard is proposed or promulgated, a determination is made that: (1) a
significant risk of serious injury or health impairment exists; (2) the
standard will reduce this risk; (3) the standard is economically and
technologically feasible; and (4) the standard is economically and
technologically feasible when compared with alternative regulatory
proposals providing equal levels of protection. Regulatory reform
efforts include consensus-based rulemaking, development of common sense
regulations, rewriting existing standards so they are understandable to
those affected by them, and regulatory and non-regulatory process
improvements.

Enforcement.--This activity provides for the enforcement of
workplace standards promulgated under the Occupational Safety and Health
(OSHA) Act of 1970 through the physical inspection of worksites, and by
fostering the voluntary cooperation of employers and employees. Programs
are targeted to the investigation of claims of imminent danger and
employee complaints, investigation of fatal and catastrophic accidents,
programmed inspections of firms with injury-illness rates that are above
the national average, and special emphasis inspections for serious
safety and health hazards. OSHA's enforcement strategy includes a
selective targeting of inspections and related compliance activities to
specific high hazard industries and worksites.

State programs.--This activity assists states in assuming
responsibility for administering occupational safety and health programs
under State plans approved by the Secretary. Under section 23 of the
OSHA Act, matching grants of up to fifty percent of total program costs
are made to States that meet the Act's criteria for establishing and
implementing State programs which are at least as effective as the
Federal program. State programs, like their Federal counterpart, provide
a mix of enforcement, outreach, training and compliance assistance
activities.

Technical support.--This activity provides specialized technical
expertise and advice in support of a wide range of program areas,
including construction, standards setting, variance determinations,
compliance assistance, and enforcement. Areas of expertise include
laboratory accreditation, industrial hygiene, occupational health
nursing, occupational medicine, chemical analysis, equipment
calibration, and safety engineering.

Compliance assistance--Federal.--This activity supports a range of
cooperative programs, training, and outreach that provide compliance
assistance in improving workplace safety and health, with particular
emphasis on small business. OSHA works with employers and employees
through Voluntary Protection Programs recognizing and promoting
effective safety and health management; partnerships focusing on the
development of extended cooperative relationships; and alliances
committing organizations to collaborative efforts with OSHA. Federal
agencies are assisted in implementing and improving their job safety and
health programs. Occupational safety and health training is provided at
the OSHA Training Institute and associated Education Centers throughout
the country. Compliance and technical assistance materials are prepared
and disseminated to the public through various means, including the
Internet.

State consultation grants.--This activity supports 90 percent
Federally-funded cooperative agreements with designated State agencies
to provide free on-site consultation to employers upon request. State
agencies tailor workplans to specific needs in each State while
maximizing their impact on injury and illness rates in smaller
establishments. These projects offer a variety of services, including
safety and health program assessment and assistance, hazard
identification and control, and training of employers and their
employees.

Training grants.--This activity supports safety and health training
grants to organizations that provide training and education and develop
educational materials for employers and employees. Grants address safety
and health education needs related to specific topics and industries
identified by the agency.

Safety and health statistics.--This activity supports the
information technology infrastructure, management information, and
statistical basis for OSHA's programs and field operations. These are
provided through an integrated data net

[[Page 669]]

work, and statistical analysis and review. OSHA administers and
maintains the recordkeeping system that serves as the foundation for the
BLS survey on occupational injuries and illnesses and provides guidance
on recordkeeping requirements to both the public and private sectors.

Executive direction and administration.--This activity supports
executive direction, planning and evaluation, management support,
legislative liaison, interagency affairs, administrative services, and
budgeting and financial control.

PROGRAM STATISTICS

2002 actual 2003 est. 2004 est.
Standards promulgated............... 2 4 3
Inspections:
Federal inspections............... 37,493 37,700 37,700
State program inspections......... 58,074 57,500 57,500
Training and consultations:
Consultation visits............... 27,726 32,500 32,500
Voluntary protection program
participants.................... 637 715 775
New strategic partnerships........ 30 35 40
Web site hits (millions).......... 561 730 949

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 145 146 150
11.3 Other than full-time permanent 1 2 2
11.5 Other personnel compensation.. 5 3 3
--------- --------- ----------
11.9 Total personnel compensation 151 151 155
12.1 Civilian personnel benefits..... 36 38 39
21.0 Travel and transportation of
persons....................... 14 11 11
23.1 Rental payments to GSA.......... 16 18 19
23.3 Communications, utilities, and
miscellaneous charges......... 5 6 6
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 5 3 4
25.2 Other services.................. 65 65 71
25.3 Other purchases of goods and
services from Government
accounts...................... 21 21 24
25.7 Operation and maintenance of
equipment..................... 15 17 13
26.0 Supplies and materials.......... 4 4 3
31.0 Equipment....................... 8 8 8
41.0 Grants, subsidies, and
contributions................. 101 94 96
--------- --------- ----------
99.0 Direct obligations............ 442 437 450
99.0 Reimbursable obligations.......... 2 2 4
99.5 Below reporting threshold......... 2
--------- --------- ----------
99.9 Total new obligations........... 446 439 454
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 2,248 2,217 2,220
Reimbursable:
Total compensable workyears:

2001 Civilian full-time equivalent
employment.................... 7 13 13
Allocation account:
Total compensable workyears:

3001 Civilian full-time equivalent
employment.................... 2 3 3
---------------------------------------------------------------------------

Allocations Received From Other Accounts

Note.--Obligations incurred under allocations from other accounts
are included in the schedules of the parent appropriations as follows:
Environmental Protection Agency: Hazardous Substance Response
Trust Fund.

MINE SAFETY AND HEALTH ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for the Mine Safety and Health
Administration, $266,767,000, including purchase and bestowal of
certificates and trophies in connection with mine rescue and first-aid
work, and the hire of passenger motor vehicles; including up to
$1,000,000 for mine rescue and recovery activities, which shall be
available only to the extent that fiscal year 2004 obligations for these
activities exceed $1,000,000; in addition, not to exceed $750,000 may be
collected by the National Mine Health and Safety Academy for room,
board, tuition, and the sale of training materials, otherwise authorized
by law to be collected, to be available for mine safety and health
education and training activities, notwithstanding 31 U.S.C. 3302; and,
in addition, the Mine Safety and Health Administration may retain up to
$1,000,000 from fees collected for the approval and certification of
equipment, materials, and explosives for use in mines, and may utilize
such sums for such activities; the Secretary is authorized to accept
lands, buildings, equipment, and other contributions from public and
private sources and to prosecute projects in cooperation with other
agencies, Federal, State, or private; the Mine Safety and Health
Administration is authorized to promote health and safety education and
training in the mining community through cooperative programs with
States, industry, and safety associations; and any funds available to
the department may be used, with the approval of the Secretary, to
provide for the costs of mine rescue and survival operations in the
event of a major disaster.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-1200-0-1-554 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Coal.............................. 116 112 114
00.02 Metal/non-metal................... 62 64 66
00.03 Standards development............. 2 2 2
00.04 Assessments....................... 5 5 4
00.05 Educational policy and development 28 28 31
00.06 Technical support................. 28 29 25
00.07 Program administration............ 12 14 11
00.08 Program Evaluation & Information
Resources....................... 14
09.01 Reimbursable program.............. 1 2 2
--------- --------- ----------
10.00 Total new obligations........... 254 256 269
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 254 256 269
23.95 Total new obligations............. -254 -256 -269
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 255 254 267
40.71 Reduction pursuant to P.L. 107-
116........................... -1
40.76 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 253 254 267
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 254 256 269
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 21 23 27
73.10 Total new obligations............. 254 256 269
73.20 Total outlays (gross)............. -254 -253 -266
73.40 Adjustments in expired accounts
(net)........................... 1
74.40 Obligated balance, end of year.... 23 27 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 238 234 245
86.93 Outlays from discretionary
balances........................ 16 19 21
--------- --------- ----------

[[Page 670]]

87.00 Total outlays (gross)........... 254 253 266
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -3 -2 -2
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 253 254 267
90.00 Outlays........................... 249 251 264
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 14 10 15
99.01 Outlays........................... 14 10 15
---------------------------------------------------------------------------
Note: The Program Evaluation and Information Resources (PEIR)
activity, added in the FY 2004 Budget, consists of funds formerly spread
among other MSHA activities. Comparative funding for PEIR is as follows:
in fiscal year 2002, $14 million; and in fiscal year 2003, $17 million.

Enforcement.--The Enforcement strategy in 2004 will be an integrated
approach that links all actions to preventing occupational injuries and
illness. These include inspection of mines as mandated by the Federal
Mine Safety and Health Act of 1977, special emphasis initiatives that
focus on persistent safety and health hazards, promulgation of safety
and health standards, investigation of serious accidents, and on-site
education and training. The desired outcome of these enforcement efforts
is to lower fatality and injury rates.

Assessments.--This activity assesses and collects civil monetary
penalties for violations of safety and health standards.

Educational policy and development.--This activity develops and
coordinates MSHA's mine safety and health education and training
policies, and provides classroom instruction at the National Academy for
MSHA personnel, other governmental personnel, and the mining industry.
States provide mine health and safety training materials, and provide
technical assistance through the State Grants program.

Technical support.--This activity applies engineering and scientific
expertise through field and laboratory forensic investigations to
resolve technical problems associated with imple- mentation of the Mine
Act. Technical support administers a fee program to approve equipment,
materials, and explosives for use in mines and performs field and
laboratory audits of equipment previously approved by MSHA. It also
collects and analyzes data relative to the cause, frequency, and
circumstances of accidents.

Program evaluation and information resources (PEIR).--This new
activity provides program evaluation and information technology resource
management services for the agency. Additionally, PEIR is responsible
for meeting the requirements of the Government Performance and Results
Act (GPRA) and developing MSHA's performance plan and Annual Performance
Report.

Program administration.--This activity performs general
administrative functions.

PROGRAM STATISTICS

2002 actual 2003 est. 2004 est.
Enforcement:
Fatality Rates:
Coal mines...................... .032 .027 .023
Metal/non-metal mines........... .020 .017 .014
All Injury Rates
Coal mines...................... 5.99 4.91 4.03
Metal/non-metal mines........... 3.81 3.16 2.62
Regulations promulgated......... 5.00 5.00 3.00
Assessments:
Violations assessed............... 114,844 126,000 133,000
Educational policy and development:
Course days....................... 1,925 1,925 1,925
Technical support:
Equipment approvals............... 796 750 750
Field investigations.............. 368 512 522
Laboratory samples analyzed....... 30,981 41,560 41,560
Note.--Rates have been adjusted to reflect revised categories.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 134 139 146
11.3 Other than full-time permanent 1 1
11.5 Other personnel compensation.. 5 5 5
--------- --------- ----------
11.9 Total personnel compensation 139 145 152
12.1 Civilian personnel benefits..... 41 40 42
21.0 Travel and transportation of
things........................ 10 11 11
22.0 Transportation of things........ 4 3 3
23.1 Rental payments to GSA.......... 10 10 11
23.3 Communications, utilities, and
miscellaneous charges......... 3 3 3
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 1
25.2 Other services.................. 5 6 6
25.3 Other purchases of goods and
services from Government
accounts...................... 13 10 11
25.4 Operation and maintenance of
facilities.................... 1 1
25.7 Operation and maintenance of
equipment..................... 7 6 6
26.0 Supplies and materials.......... 4 3 4
31.0 Equipment....................... 7 7 8
41.0 Grants, subsidies, and
contributions................. 8 8 8
--------- --------- ----------
99.0 Direct obligations............ 253 254 267
99.0 Reimbursable obligations.......... 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 254 256 269
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 2,205 2,264 2,334
---------------------------------------------------------------------------

BUREAU OF LABOR STATISTICS

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for the Bureau of Labor Statistics, including
advances or reimbursements to State, Federal, and local agencies and
their employees for services rendered, $437,152,000, together with not
to exceed $75,110,000, which may be expended from the Employment
Security Administration Account in the Unemployment Trust Fund.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0200-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Labor force statistics.......... 215 223 233
00.02 Prices and cost of living....... 148 161 168
00.03 Compensation and working
conditions.................... 74 76 80
00.04 Productivity and technology..... 10 10 10
00.06 Executive direction and staff
services...................... 27 28 29
09.01 Reimbursable program.............. 13 16 10
--------- --------- ----------
10.00 Total new obligations........... 487 514 530
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 8 8
22.00 New budget authority (gross)...... 487 514 522
--------- --------- ----------

[[Page 671]]

23.90 Total budgetary resources
available for obligation...... 495 522 530
23.95 Total new obligations............. -487 -514 -530
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 8 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 407 426 437
40.71 Reduction pursuant to P.L. 107-
116........................... -1
40.76 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 405 426 437
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 82 88 85
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 487 514 522
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 87 60 63
73.10 Total new obligations............. 487 514 530
73.20 Total outlays (gross)............. -510 -510 -524
73.40 Adjustments in expired accounts
(net)........................... -2
74.40 Obligated balance, end of year.... 60 63 69
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 440 428 439
86.93 Outlays from discretionary
balances........................ 70 82 85
--------- --------- ----------
87.00 Total outlays (gross)........... 510 510 524
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -81 -87 -84
88.40 Non-Federal sources........... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -82 -88 -85
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 405 426 437
90.00 Outlays........................... 428 422 439
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 14 13 15
99.01 Outlays........................... 14 13 15
---------------------------------------------------------------------------

Note.--The appropriations language above represents the first step
in converting the financing for the Occupational Employment Survey from
a program year to a fiscal year basis.

Labor force statistics.--Publishes monthly estimates of the labor
force, employment, unemployment, and earnings for the nation, states,
and local areas. Makes studies of the labor force. Publishes data on
covered employment and wages, by industry. Provides economic
projections, including changes in the level and structure of the
economy, as well as employment projections by industry and by
occupational category. Resources are requested in 2004 for two Current
Population Survey supplements annually on volunteers, job turnover, and
other key labor force issues.

2002 actual 2003 est. 2004 est.
Labor force statistics (selected
items):
Covered employment and wages for
SIC industries (quarterly
series)......................... 1,000,201 N/A N/A
Covered employment and wages for
NAICS industries (quarterly
series)......................... N/A 2,079,977 2,079,977
Employment and unemployment
estimates for States and local
areas (monthly and annual
series)......................... 89,700 89,713 92,900
Occupational employment statistics
(annual series)................. 57,040 57,040 57,420
Industry projections (2 yr. cycle) 92 92 92
Occupational Outlook Handbook
statements (2 yr. cycle)........ 125 125 125

Prices and cost of living.--Publishes the Consumer Price Index
(CPI), the Producer Price Index, U.S. Import and Export Price Indexes,
estimates of consumers' expenditures, and studies of price change.
2002 actual 2003 est. 2004 est.
Consumer price indexes published
(monthly)........................... 5,400 5,400 5,400
Percentage of CPI statistics
released on schedule................ 100% 100% 100%
Producer prices:
(a) Commodity indexes published
(monthly)....................... 3,017 3,017 3,017
(b) Mining and manufacturing
indexes published (monthly)..... 5,828 5,600 5,600
International prices and price
indexes:
(a) Sample units initiated
(annually)...................... 3,200 3,200 3,200
(b) Price quotations collected
(monthly)....................... 23,000 23,000 23,000

Compensation and working conditions.--Publishes data on wages and
benefits by occupation for major labor markets and industries as well as
information on collective bargaining. Compiles annual information to
estimate the incidence and number of work-related injuries, illnesses,
and fatalities.

2002 actual 2003 est. 2004 est.
Compensation and working conditions
(major items):
Employment cost index--number of
schedules....................... 14,400 15,600 16,800
Occupational safety and health--
number of schedules............. 200,000 200,000 200,000
Federal pay reform--number of
schedules....................... 35,800 35,800 37,000

Productivity and technology.--Publishes trends in productivity and
costs for major economic sectors and detailed industries. Also analyzes
trends in order to examine the factors underlying productivity change.
Publishes international comparisons of productivity, labor force and
unemployment, and hourly compensation costs.

2002 actual 2003 est. 2004 est.
Studies, articles, and special
reports............................. 29 29 29
Series maintained................... 6,383 6,404 6,428

Executive direction and staff services.--Provides planning and
policy for the Bureau of Labor Statistics, operates the information
technology, coordinates research, and publishes data and reports for
government and public use.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 139 148 154
11.3 Other than full-time permanent 10 8 8
11.5 Other personnel compensation.. 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 152 159 165
12.1 Civilian personnel benefits..... 35 34 38
21.0 Travel and transportation of
persons....................... 7 7 7
23.1 Rental payments to GSA.......... 32 34 36
23.3 Communications, utilities, and
miscellaneous charges......... 6 8 8
24.0 Printing and reproduction....... 2 2 2
25.2 Other services.................. 26 22 23
25.3 Other purchases of goods and
services from Government
accounts...................... 88 92 97
25.5 Research and development
contracts..................... 12 12
25.7 Operation and maintenance of
equipment..................... 37 37 38
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 12 12 12
41.0 Grants, subsidies, and
contributions................. 74 77 80
--------- --------- ----------
99.0 Direct obligations............ 473 498 520
99.0 Reimbursable obligations.......... 13 15 10
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 487 514 530
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 2,506 2,468 2,468
Reimbursable:
Total compensable workyears:

2001 Civilian full-time equivalent
employment.................... 25 61 61
---------------------------------------------------------------------------

DEPARTMENTAL MANAGEMENT

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses for Departmental Management, including the
hire of three sedans; $48,565,000 for the acquisition of Depart

[[Page 672]]

mental information technology, architecture, infrastructure, equipment,
software and related needs which will be allocated by the Department's
Chief Information Officer in accordance with the Department's capital
investment management process to assure a sound investment strategy;
$273,219,000; together with not to exceed $317,000, which may be
expended from the Employment Security Administration Account in the
Unemployment Trust Fund: Provided, That no funds made available by this
Act may be used by the Solicitor of Labor to participate in a review in
any United States court of appeals of any decision made by the Benefits
Review Board under section 21 of the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 921) where such participation is precluded
by the decision of the United States Supreme Court in Director, Office
of Workers' Compensation Programs v. Newport News Shipbuilding, 115 S.
Ct. 1278 (1995), notwithstanding any provisions to the contrary
contained in Rule 15 of the Federal Rules of Appellate Procedure:
Provided further, That no funds made available by this Act may be used
by the Secretary of Labor to review a decision under the Longshore and
Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.) that has been
appealed and that has been pending before the Benefits Review Board for
more than 12 months: Provided further, That any such decision pending a
review by the Benefits Review Board for more than 1 year shall be
considered affirmed by the Benefits Review Board on the 1-year
anniversary of the filing of the appeal, and shall be considered the
final order of the Board for purposes of obtaining a review in the
United States courts of appeals: Provided further, That these provisions
shall not be applicable to the review or appeal of any decision issued
under the Black Lung Benefits Act (30 U.S.C. 901 et seq.).

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0165-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Program direction and support... 26 26 28
00.02 Legal services.................. 84 85 89
00.03 International labor affairs..... 145 92 12
00.04 Administration and management... 35 34 32
00.05 Adjudication.................... 40 41 43
00.07 Women's bureau.................. 10 8 9
00.08 Civil rights.................... 6 6 6
00.09 Chief Financial Officer......... 5 6 5
00.10 Information technology
activities.................... 50 74 49
00.11 Management crosscut............. 7 24
09.01 Reimbursable program.............. 21 14 14
--------- --------- ----------
10.00 Total new obligations........... 422 393 311
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 30 38
22.00 New budget authority (gross)...... 425 355 311
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 459 393 311
23.95 Total new obligations............. -422 -393 -311
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 38
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 385 318 273
40.71 Reduction pursuant to P.L. 107-
116........................... -1
40.73 Reduction pursuant to P.L. 107-
206........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 383 318 273
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 42 37 38
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 425 355 311
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 200 297 252
73.10 Total new obligations............. 422 393 311
73.20 Total outlays (gross)............. -319 -439 -348
73.45 Recoveries of prior year
obligations..................... -4
74.40 Obligated balance, end of year.... 297 252 216
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 241 298 262
86.93 Outlays from discretionary
balances........................ 78 141 86
--------- --------- ----------
87.00 Total outlays (gross)........... 319 439 348
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -42 -37 -38
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 383 318 273
90.00 Outlays........................... 279 402 310
----------------------------------------------------------------------------

Additional net budget authority and outlays to cover cost of fully accruing
retirement:
99.00 Budget authority.................. 10 9 9
99.01 Outlays........................... 10 9 9
---------------------------------------------------------------------------

Program direction and support.--Provides leadership and direction
for all programs and functions assigned to the Department. Provides
guidance for the development and implementation of governmental policy
to protect and promote the interests of the American worker, toward
achieving better employment and earnings, promoting productivity and
economic growth, safety, equity and affirmative action in employment,
and collecting and analyzing statistics on the labor force.

Legal services.--Provides the Secretary of Labor and Departmental
program officials with the legal services required to accomplish the
Department's mission. The major services include litigating cases,
providing assistance to the Department of Justice in case preparation
and trials, reviewing rules, orders and written interpretations and
opinions for DOL program agencies and the public, and coordinating the
Department's legislative program. A provision has been added to fund
legal services associated with extraordinary case enforcement
activities.

International labor affairs.--Supports the President's international
labor agenda and coordinates the international activities for the
Department of Labor. Activities include coordination with other U.S.
government agencies, intergovernmental organizations, and non-
governmental organizations, as well as meeting the requirements of the
Government Performance and Results Act (GPRA).

Administration and management.--Exercises leadership in all
Departmental administrative and management programs and services and
ensures efficient and effective operation of Departmental programs;
provides policy guidance on matters of personnel management, information
resource management and procurement; and provides for consistent and
constructive internal labor-management relations throughout the
Department.

Adjudication.--Conducts formal hearings and renders timely decisions
on claims filed under the Black Lung Benefits Act, the Longshore and
Harbor Workers' Compensation Act and its extensions, the Federal
Employees' Compensation Act and other acts involving complaints to
determine violations of minimum wage requirements, overtime payments,
health and safety regulations and unfair labor practices.

Women's bureau.--Promotes the interests of wage earning women, and
seeks to improve their working conditions and advance their
opportunities for profitable employment.

Civil rights.--Ensures full compliance with title VI of the Civil
Rights Act of 1964 and other regulatory nondiscrimination provisions in
programs receiving financial assistance from the Department of Labor and
promotes equal opportunity in these programs and activities; and
ensures equal employment opportunity to all DOL employees and applicants
for employment.

[[Page 673]]

Chief financial officer.--Responsible for enhancing the level of
knowledge and skills of Departmental staff working in financial
management operations; developing comprehensive accounting and financial
management policies; assuring that all DOL financial functions conform
to applicable standards; providing leadership and coordination to DOL
agencies' trust and benefit fund financial actions; monitoring the
financial execution of the budget in relation to actual expenditures;
and managing a comprehensive training program for budget, accounting,
and financial support staff.

Information technology activities.--This activity represents a
permanent, centralized IT investment fund for the Department of Labor
(DOL) managed by the Chief Information Officer (CIO). As required by the
Clinger Cohen Act, in 1996, the Department established a Chief
Information Officer accountable for IT management in the DOL, and
implemented an IT Capital Investment Management process for selecting,
controlling, and evaluating IT investments. The Department established a
baseline of existing information technologies and provides a target
environment as a framework for future information technology
investments.

Management Crosscut.--This activity addresses major management
issues facing all DOL agencies including those in the President's
Management Agenda. The FY 2004 request includes resources to address
workforce restructuring, budget and performance integration, competitive
sourcing, physical and personnel security, and space consolidation.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 112 118 120
11.3 Other than full-time permanent 2 1 1
11.5 Other personnel compensation.. 2 3 3
--------- --------- ----------
11.9 Total personnel compensation 116 122 124
12.1 Civilian personnel benefits..... 25 25 25
21.0 Travel and transportation of
persons....................... 4 3 3
23.1 Rental payments to GSA.......... 16 17 19
23.3 Communications, utilities, and
miscellaneous charges......... 3 2 2
24.0 Printing and reproduction....... 1
25.1 Advisory and assistance services 17 8 8
25.2 Other services.................. 29 23 29
25.3 Other purchases of goods and
services from Government
accounts...................... 23 19 20
25.5 Research and development
contracts..................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 30 48 33
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 18 37 26
41.0 Grants, subsidies, and
contributions................. 117 72 5
--------- --------- ----------
99.0 Direct obligations............ 402 379 297
99.0 Reimbursable obligations.......... 20 14 14
--------- --------- ----------
99.9 Total new obligations........... 422 393 311
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 1,510 1,506 1,500
Reimbursable:
Total compensable workyears:

2001 Civilian full-time equivalent
employment.................... 10 17 17
---------------------------------------------------------------------------

Office of Disability Employment Policy

salaries and expenses

For necessary expenses for the Office of Disability Employment
Policy to provide leadership, develop policy and initiatives, and award
grants furthering the objective of eliminating barriers to the training
and employment of people with disabilities, $47,333,000.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of Disability Employment
Policy.......................... 35 47 47
00.02 President's Task Force on the
Employment of Adults with
Disabilities.................... 3
--------- --------- ----------
10.00 Total new obligations........... 38 47 47
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 38 47 47
23.95 Total new obligations............. -38 -47 -47
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 38 47 47
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 45
73.10 Total new obligations............. 38 47 47
73.20 Total outlays (gross)............. -9 -31 -44
74.40 Obligated balance, end of year.... 29 45 48
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 12 12
86.93 Outlays from discretionary
balances........................ 19 32
--------- --------- ----------
87.00 Total outlays (gross)........... 9 31 44
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 38 47 47
90.00 Outlays........................... 9 31 44
---------------------------------------------------------------------------

Office of Disability Employment Policy.--This office provides
leadership to eliminate employment barriers to people with disabilities.
It works within DOL to ensure that all DOL programs address the needs of
people with disabilities and to increase participation of people with
disabilities in DOL training programs--particularly those serving youth.
The office also develops and implements innovative pilot programs while
working to integrate effective approaches into mainstream programs.
Finally, the office assists the Presidential Disability Partnership
Board in developing public/private efforts needed to promote employment
of persons with disabilities.

The Office of Disability Employment Policy brings a heightened and
permanent long-term focus on increasing employment of persons with
disabilities through policy analysis, technical assistance, development
of best practices and outreach to persons with disabilities and
employers. Funding is used to develop programs and policies designed to
increase the number of youth and adults with disabilities who enter, re-
enter, and remain in the workforce. Additionally, this office develops
and implements innovative pilot programs to integrate people with
signficant disabilities into mainstream workforce programs.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0166-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 4 5 5
12.1 Civilian personnel benefits....... 1 1 1
21.0 Travel and transportation of
persons......................... 1 1
23.1 Rental payments to GSA............ 1 2 2
25.2 Other services.................... 6 8 8
25.3 Other purchases of goods and
services from Government
accounts........................ 2
25.5 Research and development contracts 2 2
41.0 Grants, subsidies, and
contributions................... 24 28 28
--------- --------- ----------
99.9 Total new obligations........... 38 47 47
---------------------------------------------------------------------------

[[Page 674]]

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 36 65 65
---------------------------------------------------------------------------

Office of Inspector General

For salaries and expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $60,896,000, together with not to exceed $5,899,000, which may
be expended from the Employment Security Administration Account in the
Unemployment Trust Fund.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0106-0-1-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 58 63 67
09.01 Reimbursable program.............. 11 17 2
--------- --------- ----------
10.00 Total new obligations........... 69 80 69
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 67 80 69
23.95 Total new obligations............. -69 -80 -69
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 52 57 61
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 15 23 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 67 80 69
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 15 10 11
73.10 Total new obligations............. 69 80 69
73.20 Total outlays (gross)............. -72 -79 -69
73.40 Adjustments in expired accounts
(net)........................... -1
74.40 Obligated balance, end of year.... 10 11 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 56 73 62
86.93 Outlays from discretionary
balances........................ 16 6 7
--------- --------- ----------
87.00 Total outlays (gross)........... 72 79 69
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -15 -23 -8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 52 57 61
90.00 Outlays........................... 57 56 61
----------------------------------------------------------------------------

Program activities.--Program activities within the Office of
Inspector General (OIG) include audit, program fraud, labor
racketeering, special evaluations and inspection of program activities,
and executive direction and management. The Office of Audit performs
audits of the Department's financial statements, programs, activities,
and systems to determine whether information is reliable, controls are
in place, resources are safeguarded, funds are expended in a manner
consistent with laws and regulations and managed economically and
efficiently, and desired program results are achieved. The Office of
Labor Racketeering and Fraud Investigations (OLRFI) administers an
investigative program to detect and deter fraud, waste and abuse in
Departmental programs; and to identify and reduce labor racketeering and
corruption in employee benefit plans, labor management relations, and
internal union affairs. The OIG also conducts DOL program evaluations,
special reviews and inspections; analyzes complaints involving DOL
programs, operations, or functions; and provides strategic planning and
Congressional liaison services. The OIG carries out executive direction
and management activities which include: management, legal counsel,
administrative support, information technology, procurement, personnel,
and financial functions. The OIG also provides technical assistance to
DOL program agencies.

2002 actual 2003 est. 2004 est.
Audit Reports Issued................ 80 84 94
Investigative Cases Opened.......... 401 410 440
Investigative Cases Closed.......... 589 600 620
Evaluation Reports Issues........... 11 15 16

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 29 33 34
11.5 Other personnel compensation.. 3 4 4
--------- --------- ----------
11.9 Total personnel compensation 32 37 38
12.1 Civilian personnel benefits..... 8 8 9
21.0 Travel and transportation of
persons....................... 3 4 4
23.1 Rental payments to GSA.......... 4 4 5
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 3 5 6
25.3 Other purchases of goods and
services from Government
accounts...................... 6 3 3
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 58 63 67
99.0 Reimbursable obligations.......... 11 17 2
--------- --------- ----------
99.9 Total new obligations........... 69 80 69
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 426 453 473
---------------------------------------------------------------------------

Veterans Employment and Training

Not to exceed $193,443,000 may be derived from the Employment
Security Administration Account in the Unemployment Trust Fund to carry
out the provisions of 38 U.S.C. 4100-4112, 4211-4215, and 4321-4327, and
Public Law 103-353, and which shall be available for obligation by the
States through December 31, 2004, of which $2,000,000 is for the
National Veterans' Employment and Training Services Institute. To carry
out the Homeless Veterans' Reintegration Program (38 U.S.C. 2021), and
the Veterans' Workforce Investment Programs (29 U.S.C. 2913),
$26,550,000, of which $7,550,000 shall be available for obligation for
the period July 1, 2004 through June 30, 2005.

[[Page 675]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-0164-0-1-702 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

State administration:
00.01 Disabled veterans outreach
program..................... 82 82
00.02 Local veterans employment
representatives............. 77 77
00.03 State administration grants..... 162
00.04 Administration.................. 26 27 29
00.05 National Veterans' Training
Institute..................... 2 2
00.06 Homeless veterans program....... 18 18 19
00.07 Veterans workforce investment
program....................... 8 7 8
--------- --------- ----------
10.00 Total new obligations........... 213 211 220
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
22.00 New budget authority (gross)...... 213 211 220
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 215 212 221
23.95 Total new obligations............. -213 -211 -220
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance carried
forward, end of year............ 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation:
40.00 Appropriation................. 8 7 8
40.00 Appropriation................. 18 18 19
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 26 25 27
68.00 Spending authority from offsetting
collections: Offsetting
collections (Trust Funds)....... 187 186 193
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 213 211 220
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 44 19 16
73.10 Total new obligations............. 213 211 220
73.20 Total outlays (gross)............. -238 -214 -218
73.45 Recoveries of prior year
obligations..................... -1
74.40 Obligated balance, end of year.... 19 16 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 180 172 179
86.93 Outlays from discretionary
balances........................ 58 42 39
--------- --------- ----------
87.00 Total outlays (gross)........... 238 214 218
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Trust fund sources...... -187 -186 -193
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 26 25 27
90.00 Outlays........................... 51 28 25
----------------------------------------------------------------------------

State administration.--The Disabled Veterans' Outreach Program
specialists provide outreach services and intensive employment services
to meet the employment needs of eligible veterans. Priority of service
is given to special disabled veterans, disabled veterans, and other
eligible veterans. In providing these services, the maximum emphasis is
on meeting the employment needs of economically or educationally
disadvantaged veterans. Local Veterans' Employment Representatives
conduct outreach to area employers to develop employment opportunities
for veterans. They also facilitate employment, training, and placement
services to veterans. In addition, each Local Veterans' Employment
Representative is administratively responsible to the manager of the
employment service delivery system to provide quarterly reports to the
manager of such office and to the Director of Veterans' Employment and
Training regarding compliance with Federal law and regulations with
respect to special services and priorities for eligible veterans and
eligible persons.

Administration.--Identifies policies and programs to serve and meet
employment and training needs of veterans. Monitors the States'
provision of priority of service to veterans. Evaluates job training and
employment assistance services to veterans and provides technical
assistance to States to ensure they meet negotiated performance goals.
Works with States to provide incentive awards for outstanding
performance. Coordinates a Transition Assistance Program with the
Department of Defense and Veterans Affairs. That program ensures the
provision of labor-market and employment-related information and other
services to military service members separating from active duty to
expedite and facilitate their transition from military to civilian
employment. Administers programs designed to help homeless veterans
become gainfully employed and to help veterans with service-connected
disabilities and others with significant employment barriers obtain
training and employment assistance. Promotes the concept of hiring
veterans to employers, particularly Federal contractors. Provides
information and investigates complaints to help veterans, reservists and
members of the National Guard obtain employment and reemployment rights,
including helping veterans obtain veterans' preference in Federal
employment.

National Veterans Employment and Training Services Institute.--
Administers the development of competency-based training courses and
delivers training to Federal and State providers of services to veterans
through a contract.

Homeless veterans reintegration program.--Provides grants to States
or other public entities and non-profits, including faith-based
organizations, to operate employment programs to reach out to homeless
veterans and help them become employed. Coordinates with the Department
of Veterans Affairs and Housing and Urban Development to promote multi-
agency-funded programs and integration of the different services needed
by homeless veterans. Grants are provided for both urban and rural
areas.

Veterans workforce investment program.--Provides grants mostly to
public entities for training, retraining and employment opportunities
for veterans most at risk, including those with the service-connected
disabilities, those with significant barriers to employment, and
recently separated veterans. Provides smaller grant to non-profit
organizations, including faith-based organizations, to conduct pilot or
demonstration employment programs for hard-to-serve veterans.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 15 17 17
12.1 Civilian personnel benefits..... 4 4 5
21.0 Travel and transportation of
persons....................... 2 1 1
23.1 Rental payments to GSA.......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 3 2 2
25.3 Other purchases of goods and
services from Government
accounts...................... 5 2 2
41.0 Grants, subsidies, and
contributions................. 181 181 189
--------- --------- ----------
99.0 Direct obligations............ 213 210 219
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 213 211 220
---------------------------------------------------------------------------

Personnel Summary

1001 Civilian full-time equivalent
employment.................... 249 250 250
---------------------------------------------------------------------------

[[Page 676]]

Intragovernmental funds:

Working Capital Fund

For the acquisition of a new core accounting system for the
Department of Labor, including hardware and software infrastructure and
the costs associated with implementation thereof, $20,000,000.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 16-4601-0-4-505 2002 actual 2003 est. 2004 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.01 Financial and administrative
services........................ 75 67 92
09.02 Field services.................... 30 32 34
09.04 Human resources services.......... 9 10 10
09.05 Telecommunications................ 19 19 20
09.06 Investment in reinvention fund.... 1 1
09.07 Non-DOL reimbursements............ 16 16 16
--------- --------- ----------
10.00 Total new obligations........... 149 145 173
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 4 4
22.00 New budget authority (gross)...... 142 145 173
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 153 149 177
23.95 Total new obligations............. -149 -145 -173
24.40 Unobligated balance carried
forward, end of year............ 4 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 20
Mandatory:

63.00 Reappropriation................. 3 3
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 139 142 153
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 142 145 173
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14 9 9
73.10 Total new obligations............. 149 145 173
73.20 Total outlays (gross)............. -149 -145 -156
73.45 Recoveries of prior year
obligations..................... -6
74.40 Obligated balance, end of year.... 9 9 26
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 128 131 145
86.93 Outlays from discretionary
balances........................ 18 11 11
86.97 Outlays from new mandatory
authority....................... 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 149 145 156
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -139 -142 -153
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 20
90.00 Outlays........................... 9 3 3
----------------------------------------------------------------------------

Financial and administrative services.--Provides support for
financial systems on a Department-wide basis, financial services
primarily for DOL national office staff, cost determination activities,
maintenance of Departmental host computer systems, procurement and
contract services, safety and health services, maintenance and operation
of the Frances Perkins Building and general administrative support in
the following areas: space and telecommunications, property and
supplies, printing and reproduction and energy management.

Field services.--Provides full range of administrative and technical
services to all agencies of the Department located in its regional and
field offices. These services are primarily in the personnel, financial,
information technology and general administrative areas.

Human resources services.--Provides guidance to DOL agencies in
Senior Executive Service resource management and in the management of
Schedule ``C'' and expert and consultant services, development and
administration of Departmental programs for personnel security and
financial disclosure, direct staffing and position management services,
and benefits counseling and services to DOL employees.

Telecommunications.--Provides for departmental telecommunications
payments to the General Services Administration.

Investment in reinvention fund.--Finances agency reinvention
proposals and other investment or capital acquisition projects in order
to achieve savings and streamline work processes. The fund is self-
sustaining, with agencies paying back the initial investment with
savings generated through implementation of efficiencies and reinvention
initiatives.

Non-DOL reimbursements.--Provides for services rendered to any
entity or person for use of Departmental facilities and services,
including associated utilities and security services, including support
for regional consolidated administrative support unit activities. The
income received from non-DOL agencies and organizations funds in full
the costs of all services provided. This income is credited to and
merged with other income received by the Working Capital Fund.

Financing.--The Working Capital Fund is funded by the agencies and
organizations for which centralized services are performed at rates that
return in full all expenses of operation, including reserves for accrued
annual leave and depreciation of equipment.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 42 43 44
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 43 44 45
12.1 Civilian personnel benefits....... 14 15 16
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 8 8 9
23.3 Communications, utilities, and
miscellaneous charges........... 28 28 28
25.1 Advisory and assistance services.. 5 4 4
25.2 Other services.................... 28 15 35
25.3 Other purchases of goods and
services from Government
accounts........................ 2 3 4
25.4 Operation and maintenance of
facilities...................... 1 8 11
25.7 Operation and maintenance of
equipment....................... 9 11 11
26.0 Supplies and materials............ 3 2 2
31.0 Equipment......................... 7 6 7
--------- --------- ----------
99.9 Total new obligations........... 149 145 173
---------------------------------------------------------------------------

Personnel Summary

2001 Civilian full-time equivalent
employment.................... 724 692 697
---------------------------------------------------------------------------

Allocations Received From Other Accounts

Note.--Obligations incurred under allocations from other accounts
are included in the schedules of the parent appropriations as follows:
Agency for International Development, Functional Development Assistance
Program. Department of Education: Office of Vocational and Adult
Education: ``Vocational and Adult Education''.

GENERAL PROVISIONS

Sec. 101. None of the funds appropriated in this title for the Job
Corps shall be used to pay the compensation of an individual, either

[[Page 677]]

as direct costs or any proration as an indirect cost, at a rate in
excess of Executive Level II.

(transfer of funds)

Sec. 102. Not to exceed 3 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985, as amended) which are appropriated for the current fiscal year for
the Department of Labor in this Act may be transferred between
appropriations, but no such appropriation shall be increased by more
than 10 percent by any such transfer: Provided, That the Appropriations
Committees of both Houses of Congress are notified at least 15 days in
advance of any transfer.

TITLE V--GENERAL PROVISIONS

Sec. 501. The Secretaries of Labor, Health and Human Services, and
Education are authorized to transfer unexpended balances of prior
appropriations to accounts corresponding to current appropriations
provided in this Act: Provided, That such transferred balances are used
for the same purpose, and for the same periods of time, for which they
were originally appropriated.
Sec. 502. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
Sec. 503. (a) No part of any appropriation contained in this Act
shall be used, other than for normal and recognized executive-
legislative relationships, for publicity or propaganda purposes, for the
preparation, distribution, or use of any kit, pamphlet, booklet,
publication, radio, television, or video presentation designed to
support or defeat legislation pending before the Congress or any State
legislature, except in presentation to the Congress or any State
legislature itself.
(b) No part of any appropriation contained in this Act shall be used
to pay the salary or expenses of any grant or contract recipient, or
agent acting for such recipient, related to any activity designed to
influence legislation or appropriations pending before the Congress or
any State legislature.
Sec. 504. The Secretaries of Labor and Education are authorized to
make available not to exceed $23,000 and $20,000, respectively, from
funds available for salaries and expenses under titles I and III,
respectively, for official reception and representation expenses; the
Director of the Federal Mediation and Conciliation Service is authorized
to make available for official reception and representation expenses not
to exceed $2,500 from the funds available for ``Salaries and expenses,
Federal Mediation and Conciliation Service''; and the Chairman of the
National Mediation Board is authorized to make available for official
reception and representation expenses not to exceed $2,500 from funds
available for ``Salaries and expenses, National Mediation Board''.
Sec. 505. Notwithstanding any other provision of this Act, no funds
appropriated under this Act shall be used to carry out any program of
distributing sterile needles or syringes for the hypodermic injection of
any illegal drug.
Sec. 506. (a) It is the sense of the Congress that, to the greatest
extent practicable, all equipment and products purchased with funds made
available in this Act should be American-made.
(b) In providing financial assistance to, or entering into any
contract with, any entity using funds made available in this Act, the
head of each Federal agency, to the greatest extent practicable, shall
provide to such entity a notice describing the statement made in
subsection (a) by the Congress.
(c) If it has been finally determined by a court or Federal agency
that any person intentionally affixed a label bearing a ``Made in
America'' inscription, or any inscription with the same meaning, to any
product sold in or shipped to the United States that is not made in the
United States, the person shall be ineligible to receive any contract or
subcontract made with funds made available in this Act, pursuant to the
debarment, suspension, and ineligibility procedures described in
sections 9.400 through 9.409 of title 48, Code of Federal Regulations.
Sec. 507. When issuing statements, press releases, requests for
proposals, bid solicitations and other documents describing projects or
programs funded in whole or in part with Federal money, all grantees
receiving Federal funds included in this Act, including but not limited
to State and local governments and recipients of Federal research
grants, shall clearly state: (1) the percentage of the total costs of
the program or project which will be financed with Federal money; (2)
the dollar amount of Federal funds for the project or program; and (3)
percentage and dollar amount of the total costs of the project or
program that will be financed by non-governmental sources.
Sec. 508. (a) None of the funds appropriated under this Act, and
none of the funds in any trust fund to which funds are appropriated
under this Act, shall be expended for any abortion.
(b) None of the funds appropriated under this Act, and none of the
funds in any trust fund to which funds are appropriated under this Act,
shall be expended for health benefits coverage that includes coverage of
abortion.
(c) The term ``health benefits coverage'' means the package of
services covered by a managed care provider or organization pursuant to
a contract or other arrangement.
Sec. 509. (a) The limitations established in the preceding section
shall not apply to an abortion--
(1) if the pregnancy is the result of an act of rape or incest;
or
(2) in the case where a woman suffers from a physical disorder,
physical injury, or physical illness, including a life-endangering
physical condition caused by or arising from the pregnancy itself,
that would, as certified by a physician, place the woman in danger
of death unless an abortion is performed.
(b) Nothing in the preceding section shall be construed as
prohibiting the expenditure by a State, locality, entity, or private
person of State, local, or private funds (other than a State's or
locality's contribution of Medicaid matching funds).
(c) Nothing in the preceding section shall be construed as
restricting the ability of any managed care provider from offering
abortion coverage or the ability of a State or locality to contract
separately with such a provider for such coverage with State funds
(other than a State's or locality's contribution of Medicaid matching
funds).
Sec. 510. (a) None of the funds made available in this Act may be
used for--
(1) the creation of a human embryo or embryos for research
purposes; or
(2) research in which a human embryo or embryos are destroyed,
discarded, or knowingly subjected to risk of injury or death greater
than that allowed for research on fetuses in utero under 45 CFR
46.208(a)(2) and section 498(b) of the Public Health Service Act (42
U.S.C. 289g(b)).
(b) For purposes of this section, the term ``human embryo or
embryos'' includes any organism, not protected as a human subject under
45 CFR 46 as of the date of the enactment of this Act, that is derived
by fertilization, parthenogenesis, cloning, or any other means from one
or more human gametes or human diploid cells.
Sec. 511. (a) None of the funds made available in this Act may be
used for any activity that promotes the legalization of any drug or
other substance included in schedule I of the schedules of controlled
substances established by section 202 of the Controlled Substances Act
(21 U.S.C. 812).
(b) The limitation in subsection (a) shall not apply when there is
significant medical evidence of a therapeutic advantage to the use of
such drug or other substance or that federally sponsored clinical trials
are being conducted to determine therapeutic advantage.
Sec. 512. None of the funds made available in this Act may be
obligated or expended to enter into or renew a contract with an entity
if--
(1) such entity is otherwise a contractor with the United States
and is subject to the requirement in section 4212(d) of title 38,
United States Code, regarding submission of an annual report to the
Secretary of Labor concerning employment of certain veterans; and
(2) such entity has not submitted a report as required by that
section for the most recent year for which such requirement was
applicable to such entity.
Sec. 513. None of the funds made available in this Act may be used
to promulgate or adopt any final standard under section 1173(b) of the
Social Security Act (42 U.S.C. 1320d-2(b)) providing for, or providing
for the assignment of, a unique health identifier for an individual
(except in an individual's capacity as an employer or a health care
provider), until legislation is enacted specifically approving the
standard.